The Bitcoin price has not been immune to the vulnerable financial market lately, and the market reflects this. Many other investments in the market recently have dipped below their 30% overall worth, with Bitcoin closely following suit. Although Bitcoin has been around in the financial market for 11 solid years now, the future cannot be guaranteed. Therefore, only past market trends and fluctuation history can predict what may be coming for the Bitcoin price.
What Affects Bitcoin Price?
Just like any cryptocurrency available, outside factors can determine how it will fare in the open market each day. Considering aspects such as the declining global economy, or the current COVID-19 virus outbreak, investments are behaving in correlation. It’s no wonder that many cryptocurrencies have declined significantly this past month, waiting to rebound, including the Bitcoin price.
The volume that Bitcoin is trading at can also be an indication of a price move when analyzing past market history. With large volume days in the market, only to decline afterward, investors are anxious for the next Bitcoin price. This pattern in the past with Bitcoin has displayed similarities, so many are hoping for the next breakthrough move.
How Would a Price Change Initiate Volume?
With any commodity, supply and demand can depict and alter the market significantly, and cryptocurrencies also indicate this. In the past, the Bitcoin price has been directly associated with the volume that is traded in the market. If you analyze historical cryptocurrency data, this could be an indication of a breakthrough price move for Bitcoin. In view of that, investors have been bracing for this and anticipating a price move for days as volume decreases.
After a couple of large volume days on the open market, Bitcoin has slowed significantly, stirring up interest at lower prices. Investors are now sitting up and taking notice, hoping that the price will finally grasp that momentum it needs. If Bitcoin makes the big price move everyone has been waiting for, this could mean huge market security for investors.
Is Price Change Too Optimistic for Investors?
One can only take an educated guess when exploring cryptocurrencies in today’s financial market to determine which are sound investments. There is no one hard-fast rule on which investment is good and which to avoid, unfortunately. With this in mind, potential buyers will need to examine past market trends and history fluctuations for probable outcomes.
Are Bitcoin investors too optimistic when looking for the next big price move? Possibly, but they also could be very intuitive and are secure in their choices with the price. While some find these moves too risky, others will fare well if the market changes when they take these chances. If taking some chances is right up your alley, then Bitcoin investments may be for you. While remaining a staple in the cryptocurrency market for the past 11 years, it can fluctuate with outside factors. Changes in the price of Bitcoin can yield positive results for investors who do their homework and wait out the storm.