The Bitcoin Price is Descending

sell bitcoins nowThe Bitcoin price has begun to descend. Yesterday the Bitcoin price peaked at 657, compared to 680 USD per BTC June 3rd. Today the Bitcoin price has declined with more than 15 USD from 650 USD to 635 USD per BTC. I believe that the Bitcoin price will continue down in the weeks to come. Despite the continuous good news that is being pumped on ei. Reddit, it doesn't seem to be able to maintain the artificial high price.

Recently, Dish Network announced that they would start accepting Bitcoin payments and become the largest company to accept Bitcoin to date. The news was highly applauded, but for those that invest in Bitcoin, you should be a bit more concerned as the news also informed that:

DISH Will Utilize Coinbase API

Accepting Bitcoin payments directly can be a hassle for companies, so most use payment processors that allow them to transfer the payment into fiat currency at the point of sale. Like Overstock, DISH will use Coinbase’s API to process their Bitcoin payments. However, unlike Overstock, which converts the majority of their payments to fiat currency but leaves a portion in Bitcoin form, DISH will convert the entirety of their Bitcoin payments directly to fiat.

A Problem or Blessing for Bitcoin?

Today another company, Expedia.com, announced that they would start with Bitcoin payments themselves. And Bitpay, the biggest online payment system for Bitcoin, has earlier claimed that they process more than 1 million USD a day. If I understand correct, it means that they sell bitcoins for more than 1 million USD a day to be able to give their merchants auto conversions to USD (fiat).

This is probably one of the main reasons for why the Bitcoin price seems to be unable to climb higher at the moment. It could be a blessing for Bitcoin used as a payment service (as it provides stability), but a problem for investors that want the Bitcoin price to rise.

Bitcoin Trading Volume

If you look at Bitcoin's trading volume below, you can see that in the last 5 days the trading volume has slowed down. This could mean that the market is "full" and that there is little to no buy-action left. This suggests that the current price level is too high to be sustained with the current situation.

Bitcoin Trading Volume, Blockchain.info
Bitcoin Trading Volume, Blockchain.info

The coming Bitcoin Price Development

By looking at the two graphs below showing the last month and last days, it becomes clear that the growth of the Bitcoin price has ended for now and is heading downwards. We might be seeing the Bitcoin price leveling out at 550 USD or below in the coming weeks.

bitcoin price decling

bitcoin price development

I would sell Bitcoins now

It could be a great time to cash in your Bitcoins now and await for the suspected price decline, and then buy back in when the price has stabilized once more at 400 to 550 USD per BTC. That is my strategy.

Disclaimer: I do invest and trade cryptocurrencies like Bitcoin. Trading is at own risk. This analysis is speculation. 

Featured image by Shutterstock.

This article is protected by copyright laws and is owned by CCN Markets.

About the author

Jonas Borchgrevink
Jonas Borchgrevink

Founder of CCN.com and Hacked.com. Passionate about how technology can empower people to create a more just and sustainable world.

Do NOT follow this link or you will be banned from the site!