What’s happening with Bitcoin? Freed from the tethers of precious metals and equities correlations, the front-running crypto currency is bouncing wildly between positive and negative poles, shattering expectations on both sides.
Prashant Jha, writing today at Coingape, describes the process this way: “a price correction led to high volatility…”
Semantically, it’s interesting to think about whether one we can characterize the initial price correction as volatility in and of itself – but the point is made. Jha shows how both institutional and retail holders are playing around with Bitcoin in record numbers, with trading volumes higher than we’ve ever seen.
Jha also cites one of the most common sources in looking at Bitcoin metrics – Ki Young Ju of CryptoQuant, who has been instrumental in bringing technical analysis to BTC as it flails.
In Jha’s article, Ju delineates his technical data that he says support the potential for a further correction in Bitcoin price.
First, Bitcoin miners are selling their products at a higher rate; Ju’s internal Miner Position Index supports these numbers.
Ju also cites a lack of stablecoin inflows into exchanges, and lower outflow activity at exchanges like Coinbase.
All of this, Ju says, suggests that Bitcoin may have further to fall.
“Nothing has been changed since yesterday,” Ju tweeted this morning, sandwiching the above metric arguments. “We might have (sic) second dumping.”
“(Markets are weighing) the possibility of a second impeachment for President Donald Trump encouraged safe-haven flows into the dollar, which rose to two-week highs,” adds Amanda Cooper at Business Insider.
For right now, at press time, the coin is hovering around $34,000 after spiraling all the way up to $40,000, then back down to near $30,000, and now appearing to settle comfortably somewhere in the middle. Watch the numbers carefully: given previous activity, it would not be extremely shocking to see BTC either rebound, or slump further.