Is Bitcoin Ready to Move Up?

The market has been highly volatile throughout this week, as major cryptocurrencies including bitcoin, Ethereum, Ripple, and NEO have continued to move in between $350 billion and $380 billion.

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The daily trading volume of bitcoin has remained relatively low for several days in a row, in the $5 billion region. The high volume of Tether, a cryptocurrency that is backed to the US dollar at a 1:1 ratio, can be considered as a representation of the market’s volatility, given that many traders on the world’s largest cryptocurrency trading platforms utilize Tether to hedge the value of cryptocurrencies to the US dollar.

At the time of reporting, the daily trading volume of Tether remains at $2.3 billion, which is nearly four times higher than that of Litecoin and over $800 million higher than that of Ethereum.

Crypto Rand, a respected cryptocurrency investor and analyst, stated that the “Misery Index” of bitcoin is signaling a buy opportunity for bitcoin investors. Throughout the past six years, upon a dramatic surge in sell volumes, bitcoin has continued to recover from major corrections.

For instance, in December 2016, the price of bitcoin dipped below the $800 mark as sell volumes intensified. But, throughout early 2017, the price of bitcoin rallied to $4,000, eventually achieving $19,000 within the same year.

For instance, in December 2016, the price of bitcoin dipped below the $800 mark as sell volumes intensified. But, throughout early 2017, the price of bitcoin rallied to $4,000, eventually achieving $19,000 within the same year.

It is also important to consider the major factors that are causing the price of bitcoin and other major cryptocurrencies to be extremely volatile. Some state that it is the sell off of Mt. Gox bitcoins, worth over $1.5 billion, that is preventing the market to recover.

If Mt. Gox sell off has been causing the cryptocurrency market to fall, once it stops in the short-term, the market will not be affected by many millions of dollars worth of bitcoin being dumped into the public market, on cryptocurrency exchanges.

As sell volumes decline and the demand for major cryptocurrencies increase again, and the rise of demand coincides with the halted sell off of Mt. Gox bitcoins, the price of bitcoin will likely be able to recover to January 2018 levels, given the current trend.

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