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Why bitcoin prices are staging a new collapse

On Wednesday, bitcoin, the world's most famous digital currency, dropped more than 10%, crashes through $ 6000 and reaches its…

On Wednesday, bitcoin, the world’s most famous digital currency, dropped more than 10%, crashes through $ 6000 and reaches its lowest level since October 2017.

At the end of the session bitcoin

BTCUSD, -1.15%

closed 11.6%, the third largest decline in 2018, only peaked by 16.5% fall on January 16 and a 15.5% slip on February 5 according to Dow Jones Market Data.

Even bitcooper and early adopter Barry Silbert, who said in July that bitcoin would not make a new lid in 201

8, was stunned and summarized the move in one word: Capitulation

Major drops 2018

Read: Bitcoin futures tumble 13%, trigger threshold

With average investors licking their wounds it’s time to look at the potential bitcoin crash catalysts :

Read: Do not fight against FUD: HODL on this list of bitcoin terms you need in your vocabulary

Bitcoin Cash hard fork [19659011] On Thursday, the fourth largest digital currency, Bitcoin Cash

BCHUSD, -11.76%

was added to fork and split into two currencies. The relocated has divided the crypto community with no clear consensus, TKTKwhich coins with attractTKTK the majority of miners and computer power. “This fall in prices is more likely due to the upcoming hard fork planned by Bitcoin Cash,” said Marcus Swanepoel, founder and CEO of Luno, a cotocurrency trading wallet.

“Bitcoin Cash Blockchain has undergone scheduled hard forks every six months to upgrade and improve the protocol. In most cases, these hard forks are uncontrolled with the entire community that supports them. However, in this case, consensus can not be reached with two faculties which comes forward and suggests different solutions for the upgrade. “

Read: What You Need to Know About Bitcoin Cash” Fork “

The war in the hard fork has seen two of the bitcoin’s largest Roger Ver, who is positive to the status quo and Craig Wright who champions the new Bitcoin Cash, known as Bitcoin SV (Satoshi’s Vision), has acted as a battle of where miners should commit their resources.

” It is safe to say that the Bitcoin Cash upcoming hard fork was about uncertainty among crypto makers and forecasters over krypto and traditional markets have predicted a long-lasting bear market heading to 2019, “said Donald Bullers, North American roster for Elastos, a decentralized software company that stores personal data.

Declining interest in digital currencies

After months in doldrums that pushed the volatility of bitcoin to record low levels, questions of public interest in the growing industry have increased. Data from bitcoinity.org shows a steady decline in trade volumes in 2018.

In addition, when volumes have fallen, an analyst noted that the slowdown in the decline indicates that the adoption of digital currencies has stopped. “The speed with which cryptos crashed on Wednesday indicate that there is a lot of fresh money, buying interest in the market and it ends up being limited in size,” said Nick Cawley, marketing analyst at Daily FX.

Bitcoin trading volumes

Read: Almost 10% of all bitcoins have not been moved within 12 months

Technical break

For technicians, the charts told the story. The longer bitcoin held $ 6000 without moving higher, the more vulnerable it became a sharp decline if

“[Bitcoin] has just broken under a 12 month support band defined by the fall of February, April, June and August-October , we would be careful business owners / investors to assume that this breakdown is a major error, “says Rob Sluymer, Technical Analyst at Fundstart Global Advisors, in a research statement.

Even more about HODLers-a group of investors who relentlessly hold on to their investments despite market moves. Sluymer noted that the move could come further. “This week’s breakdown increases the risk [bitcoin] will test the next support near 5000 with the next major,” he added.

But for genuine krypto anarchists, it can take more than a 10% decline to adjust their encryption. “The simple The fact is that I do not sell bitcoin in my portfolio, I’m not even interested in the daily marketing campaign, “wrote Naeem Aslam, Market Analyst at Think Markets UK

” So recently selling has not changed my opinion about the technology or potential it has . Wait for the currency or the debt crisis and the day it knocks on the door, guess who will answer the door? Bitcoin. “

Read: What’s more volatile than bitcoin? You can be surprised

Provides critical information for the American trading day. ]
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