Bitcoin is what today was not yesterday , it has created the situation for the people like they want to sell but their mind is not accepting it. Some wants to buy but their mind is telling that the price is going to fall more.
Now the thing is that why the whole cryptocurrency market is shrinking like a punctured tube ? why its not going up ? is the bitcoin bubble really burst ? is cryptomarket ever going to recover the loss?
Basically this topic is the analysis of these questions. The current situation of these market trend is called the bearish trend . this is the very obvious thing of the share market that generally happens when the market once reached to its maximum height.
Starting of the December 2017 was a bullish trend of the cryptocurrency market. During this period all coins were performiing like a king of their own zoner. Bitcoin reaches to its maximum height of INR 14lac equivalent to $19,556 / BTC. this is the all time highest rice of bitcoin. After this high jump and roller-coaster ride , major announcement and changes occurred in the whole world.
1. Price consolidation
As we are well aware that in early November it was around $8000/BTC and now its going back there this trend is nothing but the bearish trend . Every rise is followed by the low. As per on of the bitcoin expert this is called the price correction resulted by the bull run. .
(Bearish means when the price of the stock goes down and Bullish means when the price rises up)
whenever the price of certain stock rises up too much it will once fall rapidly and at the certain point will stop , at this certain point it will consolidate with the price and fixes its average price which is always more than the lowest price but less than the highest price.
For eg. : - 1BTC was costing $7500 in November. Now in December it rises unto $19,556 which was the highest price. Now the bitcoin started falling and will stop at a certain point , where the price will be more than $7500 but less than $19,556 its called the price consolidation.
2. High fees
This is regarded as the key reason of its falling during past 12 month the transaction fees of per BTC has increased to $40 per transaction , making it the costlier than the wire transaction of some of the biggest bank of USA.
3. US future listing
CME group made an announcement of listing of BTC for future based trading made a significant role and the price rises up to 65% since then . Now the surges occurred due to possible inflow of yield hungry institutional investors in the market.
4. Trying to regulate
The world government suddenly get worried about the sudden rise of the bitcoin price. They started to launch the raid and making new policies.
In December 2017 , Income Tax department of INDIA conducted a raid on nine cryptocurrency exchange. Similary South Korea made an announcement of high tax levy on income earned on trading and holding of Bitcoin or any cryptocurrency.
5. Fraud in Cryptocurrency
Due to high farud cases recording this year many investor lost their money and cryptocurrecy its credit
read more : Recent cryptocurrency fraud all over the world and in INDIA
Author : satyam kirti
