Coin Cong view: why 2018 bitcoin prices fell so much?

Obviously, all encryption currency has gone through a very difficult period. This trend will not change soon, it may be more worrying. To put to expand market trends to find a reliable interpretation is not so easy. It seems there are many factors at play, although this does not mean that the current situation will not improve.

Bitcoin slump in 2018

The first major cause of bitcoin prices fell in the year 2018 just because a few months before the currency overbought. By the end of 2017 and early 2018, the main price rising trend began to form. No financial market can in just a few months rose more than $10000 and not after back to more normal price levels. For bitcoin, this trend will take a long time to reach a normal BTC price, but now seems to have finally reached this level.

In a few months, from more than $19000 to $4000 the following withdrawal does not seem fun. Unfortunately, this is what happened in 2018 bitcoin. Although many people think that $7500 is the key support level, but the fact that this is wrong. The level of $5000 did not maintain the current $4000, without a stable support. Although cannot achieve this value in the foreseeable future, but it is still possible to $3000.

In addition, with lower prices in the past year, to play a key role in promoting the market decline further. In things worse before, many investors decided to reduce losses and withdraw from the market. Surrender usually occurs in the surge in trading volume or long-term bear market. For bitcoin and encryption currency, which is probably the reason.

It is also necessary to remember that this is not a problem of local bitcoin industry. In 2018 the stock has experienced a difficult period, which is further confirmed by the investors in rapid succession become extremely pessimistic. In the past, the stock market bearish trend seems to push people into encryption currency. This is not the case, although this is not necessarily a bad thing.

From a positive point of view, this is not the first time to see the extension of bitcoin market. After Mt.GO throughout 2014, launched the same scenario. Gox exchange for bankruptcy. The market needs to spend more time to settle in the development, not to mention further benefits. How will this affect the current bitcoin price momentum, it is difficult to predict. What theory should eventually reverse the situation, but the pressure will remain unchanged.

Some people think that bitcoin cash network protocol the recent upgrade was a contributing factor. Before the upgrade in the bitcoin cash, it must be admitted that put pressure already in place, although this may cause more controversy and frustration. Gets the hash energy from bitcoin mining to mining bitcoin cash pool is a controversial measure. In addition, there may be through the sale of bitcoin to provide funding for some mining work, although this may not lead to a drop of 15%.

In most cases, any concerns about market manipulation would be negligible. Although some traders may try to push the market in a particular direction, but may still exist such enormous impact points. The company continued to fight global encryption should be in a positive way affect the price, rather than further push down prices. Therefore, there is no “a reason to explain this downward trend, but the combination of all factors can be effectively led to a significant decline in prices. Now, this situation seems to continue, at least until further notice.

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