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Consolidations are usually volatile and can lead to unexplained rallies and declines. There seems to be no specific reason that has led to this fall; and overall, the fundamental news is positive and encouraging.
Argentinian Banco Masventas (BMV), has tied up with Bitex to facilitate the use of Bitcoin for international payments. It is expected to reduce transfer time by a day. A similar pilot project by Ripple using xRapid platform had announced payment time of just 2 minutes and transaction savings of 40-70 percent.
Various sectors are exploring ways to implement the blockchain technology to improve productivity and accountability. Similarly, the governments are also looking at ways to implement blockchain, whereas, many central banks are toying with the idea of their own cryptocurrency.
With so much happening, the dips should be seen as a buying opportunity, but the traders should wait for the decline to end before taking long positions.
We had recommended buying Bitcoin closer to the support of $7,941.68 if it held, but today it slumped below $7,700, which shows strong selling pressure. There are two possibilities at this level.
One is that the bulls will