BITCOIN STRUGGLES TO FIND DIRECTION AS CRITICISM AND COMPETITION MOUNTS
In December last year, the price of bitcoin reached almost $20,000. This capped a year when the cryptocurrency rose by more than a thousand percent. So far in 2018, the digital currency has faced multiple challenges that have seen its price drop below $6,000. The challenges have ranged from complex regulatory issues, to a sell-off right before the US tax season.
Yesterday, the price of bitcoin fell to $8027, the lowest level since mid-April. It is now trading at $8290. Comments made at the Consensus 2018 event contributed to this week’s decline.
Yesterday, Roger Ver – one of the earliest bitcoin investors often referred to as Bitcoin Jesus – said that users and developers around the world are turning to bitcoin cash rather than bitcoin core. He argued that bitcoin core was becoming slow, expensive and unreliable. Following his comments, bitcoin cash rose by more than 5% reaching $1,300.
Further crypto analysis came from Twitter CEO Jack Dorsey. The social media entrepreneur believes digital currencies to be the future of transactions with volatility being the only bottleneck. To solve this problem, Circle announced that it would be launching a cryptocurrency pegged on the dollar. This will remove the volatility that exists in bitcoin and other common cryptos.
Bitcoin started to drop on Monday last week when it reached a high of $9270. Since then, the BTC/USD has finished the downward Elliot Wave as shown below. There is a likelihood that the pair will make some gains and possibly test the important $8,500 level.