Having reached a daily high of $3,429.97 following morning gains of more than 3%, Bitcoin prices slipped back to around $3,413, although they have regained some momentum at $3,419 at 15:30 GMT.
Yesterday’s prices represented the lowest spread since October 31 with just a difference of $33 between high and low. The most recent sideways movement has lasted around 7 days, when a sell off was triggered at $4,200. Analysts have pointed to a falling wedge on the daily chart. A falling wedge is usually considered a bullish reversal pattern, which means that prices could be set to continue this morning’s increases in the coming days and weeks.
Many traders are still, according to reports, awaiting the launch of a Bitcoin ETF. An ETF would allow major investors to back the cryptocurrency without having to go through the convoluted process of buying the digital currency. However, despite a number of companies submitting proposals for an ETF, most have been declined by regulators.
Most recently, the VanEck-SolidX Bitcoin ETF was withdrawn from the Chicago Board Options Exchange (CBOE) on January 22. Most people would expect this kind of news to have a negative effect on the BTC price, but there was very little downward movement. Most experts claimed that there was so little price movement because the market had already predicted the withdrawal, so it had been accounted for in previous price declines.
Despite the currency’s troubled start to 2019, one proponent, Twitter CEO Jack Dorsey, remains adamant that BTC will become the Internet’s primary currency. During an interview with podcaster Joe Rogan, Dorsey said that he believes there will be a single Internet currency and that he thinks “it will be [Bitcoin] given all the tests it has been through and the principles behind it.”
Bitcoin prices have dropped more than 80% in the past 12 months and while many analysts are expecting the current consolidation period to end in an upward movement, BTC has disappointed in the past. Bitcoin price is currently $3,420.50 at 15:55 GMT.
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