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Bitcoin prices rise again above the psychological support level of $7,000 breaking the 200-day moving average for the first time since May.
In what seems like an unexpected resurrection, Bitcoin prices have rebounded above the psychological level of $7,000 indicating a resurgence despite waning market sentiments. Many within the crypto space had thought that this was the beginning of the end for Bitcoin prices without realizing that Bitcoin prices will rise again and also that the dip below $7,000 was temporary.
This price drop, however, raised concerns among many within the cryptospace as this dip was the lowest since Bitcoin prices peaked in may amidst the many speculations that surrounded Facebook’s Libra.
The cryptocurrency community had expected that a Bitcoin rally would have occurred due to the yuletide season as expectations go for such things. However, Bitcoin prices weren’t buoyed up indicating an apathy which in itself is also unusual for the world’s fastest-growing digital asset class. Together with falling prices, indications have emerged that Bitcoin’s volatility has reduced drastically as well leaving many to believe that further price declines are also quite possible.
Other cryptocurrencies such as Ethereum (ETH), EOS, and the other so-called “Altcoins” have been reducing in prices lately as many cryptocurrency traders have lost faith in the ability of altcoins to hold any real-time value in the long run.
On the technical side, sources indicate that Bitcoin prices breached the 200-day moving average for the first time since May indicating a support level whose trend hasn’t been seen since may indicating bearish pressure on the prices at the moment. Pundits wifthin the cryptospace think that the pressure may not hold due to the possibilities of institutional investments that will buoy up Bitcoin prices in the mid-term and beyond.
The horizon is already becoming clearer for cryptocurrency adoption on a global scale as nation-states are already introducing legislation for inflows, trading and the usage of digital assets Germany’s recent legislation allowing banks to hold custody of Digital assets being a case in point. This could be one of the use-case scenarios that will see Bitcoin prices to rise beyond expectation between now and the next half-decade.
Many HODLers on the other hand, think that the recent Bitcoin price dips are just a blip and that Bitcoin prices will rise beyond expectations come 2020. Hashing power which is still close to an all-time high at the moment indicates that lower prices will hurt the miners who may also have to sell off their digital assets in order to keep their books in the green rather than in the red.
This, of course, will also have a significant effect on prices as most major Bitcoin miners are having a hard time trying to stay afloat with the smaller Bitcoin miners losing most of their profits due to lower Bitcoin prices.
For what it is worth though, it is expected that Bitcoin prices will rise in response to market demand and not against it. This is the traditional nature of any market and Bitcoin prices are no exception to this.