Why is Bitcoin filling the gap (Why is Bitcoin falling)?

08/17/2023 11:40 • Blockchain Buzz • 104 views

Why is Bitcoin filling the gap? The reason Bitcoin rises is due to its insufficient supply, resulting in price decline. If the gap is not filled, the price of BTC will drop below $8,000, and the demand for this asset will also decrease to previous high points.

A clear phenomenon can be observed on the Bitcoin historical chart: since the trading volume and price change speed are consistent after the breakthrough, filling the gap is usually referred to as a buying opportunity, while a new low price range appears when a new historical high occurs. However, as time goes by, we find that the price trend and the actual situation have significant differences in the long term. Therefore, filling the gap is a very effective trading strategy because it can bring the Bitcoin price back to its original position and resume the upward trend above the trend line.

Why is Bitcoin falling?

Editor’s note: This article is from Cointelegraph Chinese (ID: CoinTelegram), author: MICHAEL KAPILKOV, reprinted with authorization from Odaily Star Daily.

After the Bitcoin price decline, some significant news and events have occurred in the following weeks. However, historically, this plummet is caused by an increase in demand for Bitcoin. So why did this crash happen? Let’s take a look at some major influencing factors that have occurred over the past year.

1. The U.S. Securities and Exchange Commission rejected the application of Grayscale’s Bitcoin Trust GBTC. According to a previous report released by Coindesk: “Although many institutional investors want to obtain Bitcoin exposure through ETFs, there was not enough market activity to drive this process before June.” Furthermore, since early February this year, GBTC has suspended the purchase or sale of Bitcoin futures contracts worth over $1 billion. “Given the current positive market sentiment, if we do not take action and stop the trading of such products, there may be a large-scale liquidation. Therefore, considering the ability of these companies to provide Bitcoin products and services to retail investors and the way they believe they need to protect customer funds, this situation may continue for some time,” the regulatory agency stated, “Now, there are already many people trying to use our brokerage accounts, but they are not eager to make any trades,” and “As the demand continues to rise, they can use our exchanges as reserve assets, which will cause more selling pressure.”

2. U.S. Treasury Secretary Janet Yellen denies that cryptocurrency is a legal form of payment. Last Monday, U.S. Treasury Secretary Janet Yellen said, “I haven’t seen any reason why cryptos wouldn’t be a form of illegal payment. I don’t know what it’s associated with… But I will say this—no matter what, you can’t ignore it completely.” However, she added, “Even if people start using them to move digital cash around, it’s never possible to stop them from accessing wallets. If you want a secure, non-manipulatable wallet, you have to make sure your account is not a place that has been hacked before.”

3. The U.S. Internal Revenue Service requires all trustees to register with the Federal Financial Crime Enforcement Network. Under the BitLicense agreement, taxpayers with offshore banking licenses and storing personal data on BitLicense to prevent fraudulent ICOs. It was reported that the U.S. House of Representatives recently introduced a bill aimed at reducing money laundering regulations while allowing certain states to hold Bitcoin and other virtual currencies for their residents, including miners, tax authorities, and government officials.{Keywords}: Bitcoin, filling the gap, price decline

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Why is Bitcoin filling the gap (Why is Bitcoin falling)?

Why is Bitcoin falling?

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