1 billion vanished in 7 hours! Brutal! Bitcoin market some days ago as within just hours went from 229 to 266, the next 7 hours suffered defeat, even unseen since the craze bubble in Amsterdam on the East India Company, tulips and stock market crashes in Paris and London by 1720.
From $ 226 to $ 105 and if the market capitalization is it reached $ 2 billion, then about $ 1 billion in heaven. By MTGox main market which traded currency announced that the decline is due to problems in handling the large number of transactions.
What is going on?
In this article they have an interesting view on the problem. Provided that some insiders are expecting 1 bitcoin to reach in the future $10 000, $100 000 or even $1 000 000 the current fluctuations are really insignificant.
But still this is a great story to follow. When guys I mentionned this on this forum, this may have been one of the best speculations in your life. Anyway from technical perspective this market is much more prone to analysis by the methods of technical analysis than the traditional markets and currency markets.
However on the other hand a bulgarian technical analyst states that the bitcoin is very risky and he gives some decisive arguments.
As in 2011 the question arises, what would do the merchants who accept payments in Bitcoin? If you make a deal with currency you have no idea if you would be in profit or loss only minutes after the deal.
For the customers pops the question - Buying a product, you may wonder whether you would acquire it ten times its value in other currencies, or extremely profitable.
In this case, it is difficult to hedge on both sides, especially in retail. Thus, the issue of Bitcoin currency touched again to trust.
So a new market arises and technical analyst Karadjov makes his technical estimates:
"Wrote on Apr 08 Bitcoin - where?!, I gave a level of $ 195. Exactly $ 195 turned, dropped to only $ 176, but it went to $ 266, before yesterday's debacle. It is difficult to give just any performance, but in my opinion the currency will drop to at least $ 41 if not much lower. Do not forget that it was also much lower, below $ 2, in a very recent past."
