Originally published by AxiTrader
(Bitcoin) is still a highly volatile trading instrument, especially when compared to what we usually see in the FX market. However, volatility has declined in the recent weeks as interest in other, lesser known cryptocurrencies has surged.
The crypto market is currently all about speculation. Therefore, money shifting into other cryptos is clearly negative for Bitcoin. The decrease in Bitcoin interest is also visible when visiting the main news portals for cryptocurrencies. Only a few months ago, the coverage on those websites consisted to about 90 % of Bitcoin. Nowadays, it is mainly about the alt-coins.
Another reason why Bitcoin (and the other cryptocurrencies) have come under pressure is the developments in South Korea. While a total ban of cryptotrading has failed, the country still wants to ban anonymous accounts on exchanges. The worst has been avoided, but nevertheless, life will not get easier for cryptotraders in South Korea - one of the countries with the highest trading volumes in cryptos.
The charts suggest the same: More consolidation ahead. Traders should keep an eye on the triangle pattern on the hourly chart, as well as the key resistance level at $14.900 and major support at $12.750. A clear break above or below one of those levels could spark higher volatility. But until then, the lower interest and volumes in Bitcoin suggest that BTC/USD could continue its consolidation for a while.
