The price of bitcoin appears to be stabilizing.
Amid what has been a wild weekend in the crypto markets, BTC is now down just 5 percent in the last 24 hours to a value of $6,102. Yet, that number doesn’t tell the whole story, as the cryptocurrency has been in the midst of heavy volatility after hitting a near three-week low below $5,600 earlier today.
As the charts show, the record rally from the September lows below $3,000 now appears to have topped out at $7,850 last week after a decision to abandon a controversial software upgrade triggered an unwinding of trading positions. The move appears to be sparking a migration of funds to alternative protocols, with bitcoin cash emerging as the primary beneficiary – effectively tripling in price since Thursday.
So far, the bitcoin sell-off appears for real as volumes jumped 61 percent yesterday. A high volume sell-off is often considered as a sign of “panic,” and the fact that Google search volumes revisited record highs further corroborates this view.
So, the question now is, how low can prices go?
If history is any guide, the current sell-off in bitcoin is likely to run out of steam below $5,000…