Is Bitcoin’s Price About To Take A Dive?

Is Bitcoin’s Price About To Take A Dive?

Several industry analysts and crypto news agencies have highlighted the likelihood that Bitcoin’s price will experience a dive in the short-term. Termed a price correction, this possibility is due to strong being faced by the currency to go past $6,000.

One of the persons making the claim is Peter Brandt, a trader who, in January 2018, made the correct prediction that Bitcoin would go through a bear market. According to Brandt, “…there is a chance BTC is topping here, having met its price target at key resistance. A correction could occur before another move toward 6500, then a more significant correction…”

His comments come just at the digital token’s price shot up 10% against the U.S. dollar in the past week, confirming the rise in its popularity.

Whilst warning about a possible, short-term dip or dive in the currency’s price, analysts are quick to point out that the overall trend of Bitcoin’s price is upward. This has been further confirmed by the fact that over the past 30 days, Bitcoin’s daily volume has doubled.

Exchange’s False Data Could Cause Panic

Some exchanges have been criticized or accused of providing false volume data to affect the currency’s value. Analysts have been sounding the alarm about such devious actions by less reputable crypto platforms.

In March 2019, Bitwise announced that the real daily volume of Bitcoin, which it took from exchanges with at least $1 million in verifiable daily volumes was in the region of $270 million. These exchanges included Binance, Kraken, and Bitfinex.

The team at Bitwise concluded that once analysts remove fake trading volume, Bitcoin’s trading data come very close to that of gold. In fact, gold’s market cap is about $7 trillion, with a 0.53% daily turnover, or approximately $37 billion. Similarly, Bitcoin has a market cap of around $70 billion and a daily turnover of 0.39%.

However, following the research, it was discovered that Bitfinex’s data was incorrect. On April 25, the office of the New York Attorney General, Letitia James, filed a lawsuit against iFinex, the company who manages Bitfinex. The lawsuit claimed the company mismanaged $900 million of Tether’s reserves, another subsidiary of iFinex, to cover an $850 million loss at Bitfinex.

With full details of this scandal still emerging, it is difficult to assess the short-term implications of Bitcoin’s price. According to market analysts, the ball is currently in Bitfinex’s court. If the exchange completes its $1 billion offering as supported by its key shareholder Dong Zhao, a dive in the currency’s price may be avoided.

However, if the premium of Bitcoin on Bitfinex remains at its current value of $400 for a number of weeks, then a crash may be on the horizon. In such a scenario, it is expected that a panic-driven squeeze will be the driving force behind the crash, however, analysts cannot agree about the real implications of such a situation. 

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

ChangeNOW,Decentralised,Fraud

ChangeNOW’s AML Action Lead To The Return Of $15M COMP

Earlier this week, ChangeNOW announced that it was able to identify and return 45,505 COMP back to Compound. The estimated value of this recovery is around the $15m mark. This remarkable achievement is further proof of the effectiveness of the exchange’s Anti-Money Laundering (AML) procedures. In an announcement made on ChangeNOW’s website, the company provided […]

6 October, 2021
CFD Trading Platform,eToro,Trading

eToro Lowers The FTD Minimum Across Several Countries

eToro, the social trading and multi-asset platform, has decided to lower the minimum first time deposit, or FTD. Until further updates, users who sign up today using the link below will be able to fund their trading account with as little as $50. This offer is only valid to users in selected countries. To participate […]

24 September, 2021
ChangeNOW,Cryptocurrency,Investment

ChangeNOW Launches The NOW Tracker App

The young, but fast-growing online cryptocurrency exchange, ChangeNOW, has just announced the release of its latest product. The NOW Tracker is a free asset management app that lets users keep track of their coins and tokens across different wallets. Available on Google Play and the App Store, NOW Tracker is flexible and functional. This solution […]

9 September, 2021
eToro,Investment,Trading

eToro Becomes An Official Partner Of RB Leipzig

The world’s leading social investment network, eToro, has recently announced a new and exciting partnership. According to an announcement on eToro’s Twitter page, the company has become the latest partner of the German football team, RB Leipzig. A two-year partnership agreement has been signed between the parties. Running until 2023, this agreement can be extended […]

24 August, 2021
Binance,Bitcoin,token

PSG’s Messi To Receive Part Of His Salary In Cryptocurrency

The Argentinian footballer, Lionel Messi, has made headline news several times in the past few weeks. Following his surprise departure from FC Barcelona, the player confirmed that he will be joining Paris Saint-Germain FC. The move was significantly newsworthy but got even more interest when it was announced that part of the footballer’s salary will […]

23 August, 2021
Blockchain,Casino,Ethereum

KingTiger Casino Announces Shut Down

KingTiger Casino has announced that it has ceased all operations until further notice. According to its website, the casino has had to “temporarily close” due to Ethereum network congestion. It is not yet clear if and when this online Bitcoin casino will reopen. Meanwhile, we invite you to check out other Bitcoin casinos from our […]

12 August, 2021
Binance,Casino,Cryptocurrency

CryptoCasino Announces Temporary Close

CryptoCasino has stopped operating until further notice. According to a landing page on their website, the casino is undergoing an update. There is no information about when the casino will reopen or the reason why an update required the website to shut down temporarily. Players who hold a crypto wallet account with CryptoCasino need not […]

11 August, 2021
Binance,Bitcoin,SEPA

Binance Suspends SEPA Inward Payments Until Further Notice

Binance Suspends SEPA Inward Payments Until Further Notice Binance has just announced that it has temporarily stopped all incoming SEPA payments. As a result, users will no longer be able to deposit euros using the primary European payments network. The world’s largest cryptocurrency exchange did not provide any specific information regarding the reason behind this […]

12 July, 2021