Bitcoin is selling hard, but that might not be a bad thing

According to one source, the mass sale of bitcoins shows no signs of calming down, but this does not necessarily affect the currency negatively.

As we all remember, bitcoin has had two very mixed months in both October and November. Things finally began in late September when Bakkt, institutional trading platform cryptocurrencys owned and governed by the Intercontinental Exchange (ICE), made its official debut on September 23. Despite almost a year of exaggeration and uproar, this failed to advance the crypto space seriously.

The platform experienced a very sad opening weekend, negotiating less than 75 BTC futures contracts in the first two days of activity, and as a result, the price of bitcoin suffered a lot, falling from approximately $ 9,500 to just over $ 8,100 in a matter of minutes.

However, things did not stop there, since in October, the news of the testimony of Mark Zuckerberg on Libra before a panel of the Senate proved too much for many of the leading enthusiasts the world of cryptocurrencys. Bitcoin then received another blow, lowering another $ 800 in just a few days and falling to the $ 7,400 range.

From there, a positive turn began to appear. Bitcoin experienced solid gains after Chinese President Xi Jinping commented that blockchain was a powerful technology capable of renewing the country’s infrastructure and economy. Bitcoin exploded again in the region of $ 8,000 from there, but then it jumped back to $ 10,000 (briefly) after Bakkt experienced a sudden increase in business that saw him exchange millions in bitcoin contracts.

Bitcoin finally settled back in the mid-range of $ 9,000, where it remained for some time, only now it has suffered several additional losses that have reduced it to $ 7,300 at the time of writing. While this is $ 100 higher than it was during the holiday weekend, it is still quite low in comparison.

Technical charts suggest that Bitcoin is still selling mass, and many enthusiasts are running out of patience lately when it comes to maintaining their cryptocurrencies. Most likely, they want to reduce their losses and sell their reserves before bearish behavior can take place, but the charts suggest that we are likely to see even more trades as Bitcoin continues to incur losses, which ultimately could reverse the bear process by providing bitcoin with more activity.

China is doing difficult things

Dan Matuszewski, a principle of CMS Holdings, also suggests that maybe businesses in China are also affecting cryptocurrency. He affirms:

“The great narrative revolves around what is happening in China. What he began to see is that China takes strong action against many of the encryption elements that have been operating within the country”.

Despite everything, Bitcoin is almost $ 200 higher than its lowest point on Monday of just over $ 7,160.