Technology has not only provided various ease to different professional sectors via AI and VR. But as we know about the word cryptocurrency is already established in the world. This shows us that tech now its arms on the virtual money mode for the ease for humans. Cryptocurrency not only gives the ease to humans in various things. But also comes with lots of attached threats with itself.
Production of cryptocurrency is called as mining process which is basically reflects the metaphorical irony it the situation. Through mining process people can secure their coins via computer solving algorithms. Basically, people are using technological methods to change their currency in to the virtual mode. As a result this indeed is a technological form using technology itself.
Moreover, it is known that the more coins people extract makes the algorithms more difficult. Various changes in the price as well as the trends takes place in the cryptocurrency data simultaneously. It’s been a month since the Bitcoin 2020 miner reward getting divide in half. And a lot has taken place for the predominant cryptocurrency since then.
Halving process, a new twist in cryptocurrency trends
A new reality for all bitcoin market applicants has started from the halving with changes in investor and trader behaviour to an exponential growth in institutional interest. Although the division in half process did not come with the emergent price surge that many had associated with the event, there are a some important factors that reflects the beginning of some changes that may be here to remain, some of which may even be pivotal for the future of Bitcoin as a new asset level.
In fact, some also saw that 2020 has all the principles to be a huge year for Bitcoin in reference of price and visibility. A latest analysis by Bloomberg even anticipates to Bitcoin to out show its record prices from those back in 2017 and go as high as $28,000. Recently, Simon Dedic, a co-founder of cryptocurrency analysis company Blockfyre, also went as far as to say $150000 may be a goal in reference of a bull race.
Recent drop in the rate
The week-long stability in the bitcoin market finished with a astonishing $800 price drop on Thursday.The sum-6% drop view the top cryptocurrency by market value submits its largest single-day decline in two weeks. This was stated according to CoinDesk’s Bitcoin Price index. Prices shortly strike drops near $9,100, a level last viewed on May 27.
There are two possible reasons as to why this might have taken place:
Stock market sell-off
Global worth cratered and traditional secure havens like U.S. government relations and the Japanese yen gained value in the form of comments by the U.S. Federal Reserve that the economy might require years to recover, also gave a reality check to investors anticipating for a V-shaped recovery.
Bitcoin earlier displayed resilience by holding above $9,700 during the Asian and European trading time. However, the sell-off in U.S. equities was too huge for the avoidance for the crypto market traders. Some of whom likely laid bitcoin on the fear that financial markets would be about to witness another round of panic and stress like that was viewed in March.
The Dow Jones Industrial Average (DJIA) drops by 1,800 points on Thursday, rebuilding memories of various 1000 point drops last viewed during the first half of March.
Charts leaned bearish
The cryptocurrency has failed multiple times to determine a long-lasting foothold above $10,000 since the May 11 mining reward halving. Markets often test dip demand following multiple rejections at key resistance. A bearish divergence of a key three-day chart indicator was also suggesting scope for a price pullback.
Thursday’s price drop has only made the case bolder for a deeper pullback. The slide to $9,100 displayed a downside break of the eight-day limited trading range of $9,350–$10,000.
Also, the daily chart’s comparative power index has declined into the bearish territory below 50. Analysts view bold support around $9,100, which, if breached, would offer stronger selling power.
First support comes from the weekly downtrend resistance line which bitcoin broke. Also this has been “sitting above the previous few weeks,” said Chris Thomas, head of digital assets at Swissquote Bank. “This week the amount is around $9,000-$9,100, hence [we’re] likely to determine good buying here, then $8,700 & $8,200, otherwise, the following downside zone is $6,500-$7,000.”
With lots of danger attached along with series of cyber crime possibilities, cryptocurrency has taken over the market. People extract their advantage from anything where they seek profit. Despite of the fact that the golden shining profit may have its own risky problems.