The cryptocurrency claimed $600 (£460) in the space of a few hours to return to above $7000, having fallen to its lowest since May.
The price crashes had been a result of market uncertainty in China, which saw a further crackdown on illegal exchanges.
Despite the period of volatility some analysts are claiming now is the “perfect time” to invest”
Speaking to the Independent, Peter Wood CEO of online trading platform CoinBurp explained why:
“Once again the value of bitcoin has plummeted – due to the nature of cryptocurrency, this is not the first, nor will it be the last time this occurs,”
“However, new-time investors can be comforted by the fact that its value will most likely rise again, and newcomers to cryptocurrency should see no better opportunity that to invest now.”
Predictions of the value of the crypto currency are notoriously volatile its value fluctuating between $3000 and $20,000 over the last two years.
“While nobody really knows what direction the value of any cryptocurrency will head in the near future, past trends display a possible large increase within the next 12 months at least,” Mr Wood said.
This week Bitcoin has found itself caught up in a frenzied fight for survival after the cryptocurrency’s market experienced a dangerous “death cross”.
It is only the third time a death cross has occurred in the last five years, and both previous crosses resulted in catastrophic price collapses that more than halved bitcoin’s value.
A death cross is a pattern on most financial charts that happens when the short-term moving average of a particular stock crosses below the line of the long-term moving average.
Nine times out of ten, in almost any market, it sounds a warning klaxon to traders that the market is on the brink of a massive correction.
While this is only the third time in recent cycles that a death cross has appeared on the bitcoin charts, it has come perilously close to it on several occasions – although each one was beaten back with strong resistance.
That response is beginning to show a little in the current fight to maintain BTC’s value and, while the push back up over $7,000 is admirable, it still looks like too little prevent the inevitability that a death cross invariably brings.
Bitcoin was unable to successfully repel a downward push on two traditional lines of resistance – $7,800 and $7,300 – last week, leaving things looking decidedly weak.
The price crashes had been a […]