It has been a sad month for bitcoin. This month, its price has fallen from a high of $17,159 to a low of $9218. As of this writing, bitcoin is currently trading at $9818.
Bitcoin has faced multiple problems this month with South Korea being the biggest one as the nation started a crackdown on exchanges.
Another problem was the eventual realization that bitcoin was ‘probably’ not a better alternative to fiat currency. As you know, bitcoin was invented to create a decentralized mode of payment, free from any regulatory authority. Bitcoin has however become inefficient in terms of speed and costs of transactions. A new report by CNBC found that bitcoin’s popularity was waning among crooks who are now shifting to other currencies like Litecoin and ethereum.
The problems keeps on coming. Last week, Weiss Ratings released its first ratings on cryptocurrencies. Bitcoin received a weak C rating, below Ethereum, which received a B.
Yesterday, Facebook announced that it would stop accepting adverts from all bitcoin-related companies, ICOs, and promotions. To many people in the cryptocurrencies space, this is major news because they use Facebook to reach to millions of users.
As shown below, from a monthly chart, bitcoin seems to be forming an asymmetrical triangle formation. It is also trading lower than the 50-period moving average and in line with the 14-day MA. These moves are an indication that consolidation is happening in the bitcoin/dollar pair. This means the price could break the barrier in either direction.
