The Bitcoin market is never boring and this past week didn’t disappoint with the flash crash to $380. The price has since rebounded and Bitcoin is currently trading at $414. One of the main factors which undeniably contributed to the price slump is Bitcoin’s transaction backlog which occurred around March 3rd.
Also Read: Monero Technical Analysis for 03/07/2016 – Price Trapped Between Pivot Zones
Last week the network got flooded with spam transaction, which effectively increased the fee required to confirm transactions in a timely manner. As a result, many services that accepted Bitcoin received a flood of customer complaints that their payments weren’t going through. This caused many merchants to remove Bitcoin as a payment options from their store, furthermore an article published on The Verge titled “ Bitcoin’s nightmare scenario has come to pass ” received an extraordinary amount of shares which also attributed to the weekend selloff. Bitcoin has reached a crisis point https://t.co/POzdXmqAKR pic.twitter.com/TxEsUIOTmO — The Verge (@verge) March 5, 2016 Bitcoin proved once again to be quite resilient as the market rebounded after the sharp selloff, the next hurdle up is the resistance line at $420 which held for over a week before the crash. The quick rebound tells us that the dumping is over for now, furthermore the halvening of the block reward in a few months suggests a bullish case for the market. However, as major media outlets continue to portray Bitcoin and Blockchain in general in a negative manner, the Bitcoin and other cryptocurrency markets will undoubtedly feel the effect of the negative attention.
Some traders such as NorthStreet from tradingview, are suggesting to short Bitcoin as far as $345 due to the incoming Death Cross. “A death cross occurs when the short-term moving average of a security or an index pierces […]
