One of the main things that make Bitcoin different when compared to most of the market currencies that are available at this moment is its trading price, which can suffer great modifications from one day to another. In turn, this puts Bitcoin exchange companies in the spotlight, as they strive to compete against one another while also keeping track of the universal exchange price.
While the cryptocurrency has gotten to a price of around $230 this week, it seems like the recent events and the increasing popularity of the coin has made its price have an increase to $252, which meant that Bitcoin exchanges also had to tweak their prices. However, the last few hours have also brought a spike in the trading power of the coin which has returned the price to the earlier resistance of around $260, making no major difference. This does not only raise a couple of questions, but it also allows professionals to gain a little bit more insight into the inner workings of the coin, as an effort to understand how its value increases and decreases.
As economic analysts indicate, it took one hour to make the price increase from $240 to $250 which once again proves the extreme volatile state of the coin at this moment in time. Based on the data that has been accumulated, the return to the previous resistance of $240 is also a deep retrace, which is bad news for the coin, as it continues to swing around the same general value. However, the greater spikes in the price of the coin tend to point towards a phenomenon that may be even more important, which is the unique way that Bitcoin is gathering momentum.
When considering the normal logic of the trading market, an analyst would assume that once a price goes down, it is bound to go up and vice versa. Although in the long run this may be exactly what Bitcoin will witness, it currently seems like it is taking the cryptocurrency a longer period of time to actually get past its steady point and begin increasing. Some believe that the only logical explanation in this case refers to the fact that this is the ideal place for the price to idle. However, sudden increases in the value of Bitcoin just like we’ve seen in the last couple of hours tend to point out that the cryptocurrency follows a different path than what normal currencies or even stock actions would take.
While there is no exact way to control the market or to make presumptions in the case of the cryptocurrency, the fact that it is experiencing bigger and bigger increases in value and then equal stagnations of it is starting to make more and more people believe that the 2014 phenomenon when the coin increased in price a lot is bound to happen all over again. In this case, all of those who find themselves with a large amount of coins stored at the time of the increase will yet again find themselves much richer overnight. While such events aren’t really beneficial for the coin, this tends to be the trend when it comes down to cryptocurrencies and how they work, as there is simply no central authority over it that could otherwise dictate the market price for the coin. With this in mind, it is important to remember that a year ago, the number of exchanges was significantly lower, but the recent Bitcoin price trend that is becoming popular has also increased the total number of exchanges throughout the world.
However, there are still some issues over in the United States, as even Coinbase which is one of the most popular exchanges in the world is only registered in a total of 40 states because gaining the authority to be a money issuer in most states is both difficult, but also expensive.
Based on everything that has been outlined so far, it is thought that before another value increase, people from all around the world will experience a couple of more events like the recent one, as the coin goes through the natural process of getting the momentum it needs in order to prepare for the big jump that will probably come around soon. By learning more from the recent events, not only will Bitcoin exchanges be able to foresee further decreases in value, but they will also be able to tweak their prices accordingly, thus creating a competitive environment for all exchanges and putting the Bitcoin exchange market on the right path.