Bitcoin Price Watch: Currency Remains Sluggish, May Not Have Bottomed

At press time, the father of crypto is trading for an even $3,600. This means that while it’s still in the same range, the currency has fallen a bit since our last price piece. Not a huge deal, and yet considering the troubled behavior bitcoin has exhibited over the past two months, many can’t help but wonder if this is a sign of more negativity.

Jani Ziedens of the Cracked Market blog says that bitcoin is in a somewhat “lethargic” state. The currency is remaining where it is and stubbornly refuses to move beyond its present resistance levels. At the same time, Ziedens doesn’t believe bitcoin has bottomed out.

BTCUSD: Bitcoin The Important Setup

Chart by DLavrov

The blogger explains:

“Bitcoin continues to struggle and is in the mid-3K’s. If prices were oversold, we would have bounced by now. This lethargic base tells us that demand is still incredibly weak and this selloff still hasn’t found a bottom.”

So, what exactly would that lead to? Should we be grateful that bitcoin is where it is and, for now at least, hasn’t dropped any further? Is it possible for the leader of the crypto industry to slink deeper into the depths?

One of the unfortunate factors remaining is that bitcoin and other forms of crypto aren’t receiving the attention they deserve in other nations. For example, the Bank of International Settlements (BIS) is now warning investors that cryptocurrency trading is “trivial,” and that anyone willing to put funds in crypto could wind up losing all their money. The institution suggests the risks behind crypto greatly outweigh the potential prospects.

In an official statement, the bank mentions:

“No central banks reported any significant or wider public use of cryptocurrencies for either domestic or cross-border payments in their jurisdictions. Usage of cryptocurrencies is assessed to be either minimal (trivial/no use) or concentrated in niche groups.”

In addition, the establishment also reports that most international banks believe cryptocurrency use is likely to remain light over the next few years as the public doesn’t understand it enough. Retail merchants have also been slow to adopt crypto as a method of payment, and compliance issues remain.

BIS says:

“At this stage, most central banks appear to have clarified the challenges of launching a CBDC, but they are not yet convinced the benefits will outweigh the costs.”

On the contrary, Mati Greenspan of e-Toro fame believes that bitcoin transactions are reaching an all-time high, and that the currency is on the verge of becoming more popular than ever. He exclaims:

“Bitcoin’s blockchain is heating up rapidly. The [bitcoin] transaction rate is hitting its highest level in almost a year. Of course, more transactions on the blockchain is neither bullish nor bearish. The comforting thing is that last time the transaction rate was this high, we saw a distinct clog in the network.”

Bitcoin Charts by TradingView

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