Here is a list of the reasons for the current pressure on the price of Bitcoin:
• Plans of South Korea about banning cryptocurrencies in the future.
• China ordered the exit of cryptocurrency mining and transaction verifying. This is due to heavy power consumption.
• Currently, China hosts 80% of the computer capacity of the Bitcoin blockchain. Can this huge computer power be replaced fast enough? Or will Bitcoin come to temporarily halt?
• Because of the newly implemented high transaction fees, will Bitcoin -2.87% -8.57% survive as a payment coin?
• Currently, Bitcoin payment transactions are very slow and are no more applicable on checkouts of big retail stores.
• Bitcoin can no more be used for micro-donations and micro-payments because of the high transaction fees.
• Will a coin that can no more keep its promises remain the number one coin in the world?
• Sheikh Shawki Allam, the Grand Mufti of Egypt, issued a formal fatwa on Monday January 8, 2018, stating that trading in the digital currency is “forbidden in Sharia”.
• Since Bitcoin futures exist, there is more pressure on the price of the Bitcoin .
• USA and Bulgaria are selling seized Bitcoins worth 3.5 billion USD.
The pressure on the price of Bitcoin in combination with a shrinking community are causing the current problems of Bitcoin . It is uncertain if Bitcoin will ever recover from the actual massacre of its price. This crisis is because of the discovered fundamental weaknesses of Bitcoin . Unlike earlier price drops, this time it is not just a normal correction. Users are leaving Bitcoin . They prefer new, more efficient high performance coins.
The scenario develops exactly in the way I have described it in previous ideas. As long as the price of Bitcoin remains below the level of 12230, the scenario remains intact. Right now, the price of the Bitcoin is approaching the 9005 level of the low from December 17, 2017. On the chart, it is moving down inside the yellow channel.
At the 9005 level, there will another showdown between Bulls and Bears happen. Who will win? The price of the Bitcoin , will it drop to 5568? Will the ongoing sell-off continue?
The below chart delivers an overview of the rise and fall of Bitcoin.
Currently, BTCUSD is moving down inside the yellow channel.
At the level of 9005, Bulls and Bears will have to compete for the further direction of the Bitcoin’s price.
Will the low from January 17, 2018 and the coming low at 9005 form a double bottom? After touching the ground, will BTCUSD rise to the target of 17174 and higher? Of course, this is the wish of all of us. Bitcoin shall continue its triumphal march.
However, there is trouble brewing. It is very likely that the Bears win once more and send the price of Bitcoin as far down as 5594. The decrease will probably be quite flat, as indicated with the red curved arrow.
Additionally to the already mentioned reasons, the central banks will sell Bitcoins with the goal of making cryptocurrency users feel that even cryptocurrencies can lose their value. Politics are against Bitcoin in these days.
Outbreak of the yellow channel on the upper side. Above 12230 the scenario will turn into bullish. I stopped all my down trades and took profit. I started a trade upwards with a small amount.