Those who trade bitcoin had a tough time today as the coin struggled to maintain its recent high levels. At the time this article is written, bitcoin is hovering around $7,200, which is several hundred dollars lower than the previous few days. Prices ended up dropping to under $6,950 before regaining a little headway.
Many believe that this is only a short term effect and that the coin will likely come back but at the current time, the short term moving average does not seem to be breaking.
Investors are still unsure of whether or not the recent pullback will continue, or whether the price will bounce back and once again reach new highs. Some traders are predicting a correction to around $6,500, while others think it will stay volatile as the hard fork comes up in the next few weeks.
Looking at the Google search volumes, the amount bitcoin has been searched for over the past day or so has declined, which contributes some validity to the claim of whether or not people are simply “panic selling.” Panic selling could be occurring rather than selling for any reason other than speculation. Looking at the price action, bitcoin could head towards consolidation and a downside moving curve over the course of the next week or so.
Looking at the chart, one can notice a bearish doji reversal. This simply occurs when a candle on the chart is with an almost equal open and close price, is quickly followed by negative price action over the next day or two.
While some are becoming bearish about the market on bitcoin, it does not seem to be slowing down anytime soon. Rather than slow down, the market could simply be reacting to uncertainty, which will likely calm down soon.