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Bitcoin Slumps to $6,500 but Recovers Quickly

November 25, 2019 at 16:16 by Matt Jackson

Bitcoin prices slumped overnight, falling as low as $6,500. However, hours later, the cryptocurrency had recovered its losses and is now trading at $7,250. Most major cryptocurrencies faced a similar fate, with significant losses overnight, followed by a recovery in morning trading. Before the bounce, Bitcoin was trading at half of its June peak price, although it is still more than double its early January price.

Some analysts have warned that worse may still be to come as there is a potential death cross on the horizon. A death cross forms when the 50-day moving average falls below the 200-day moving average. This has only happed a handful of times in Bitcoin’s history but has led to significant losses in those instances. Some have warned of a $2,500 Bitcoin if buyers fail to retake the $7,350 mark.

During the slump, the number of searches for the term Bitcoin, on Google, spiked. It has reached the same search volume as in October of last year, although it is unclear whether this is potential new investors looking for opportunities, or whether it is existing investors looking for information on the slump.

Bitcoin’s recent price increases were attributed to the fact that China’s stance on cryptocurrency and Bitcoin had softened somewhat. President Xi Jinping had said that blockchain (not Bitcoin) represented an excellent opportunity for his countrymen. However, officials have reiterated their stance that they will continue to crack down on crypto. According to officials, more than 25,000 Chinese blockchain companies attempted to issue new coins. ICOs are illegal in China, mining and holding cryptocurrencies remain legal activities.

Bitcoin (BTC) prices have settled at $7,310.58, which actually represents a 1.89% increase over 24 hours. Ethereum (ETH) has seen a similar 1.38% increase and is now trading at $149.97. Ripple (XRP) has not managed to recover all of its losses and has shed 3.1% off its prices, changing hands at $0.223. Bitcoin Cash (BCH) and Litecoin (LTC) have performed well, increasing 2.62% and 2.14% to $214.74 and $47.18 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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