by Joseph Young, Coin Telegraph:
Based on technical indicators and moving averages, prominent trading and investment platform Investing.com states that it is optimistic for Bitcoin traders to purchase the digital currency for both short and long term profit.
On Feb. 9, Bitcoin price plunged overnight, decreasing from $1,060 to $964. Bitcoin has already recovered since then, rising back to $1,030 in most major markets.
Shock and panic
Last week, the People’s Bank of China halted withdrawals for Bitcoin and Litecoin users of Huobi and OKCoin, two of the largest Bitcoin exchanges in China that control roughly 20 percent of the global Bitcoin exchange market with a $50 mln trading volume.
Temporary suspension of Bitcoin withdrawal on Huobi and OKCoin caused a shock in the US Bitcoin exchange market, triggering panic sellers to auction off their funds and Bitcoin on major Bitcoin exchange platforms such as Bitfinex and Kraken.
Despite the resilience of the Chinese Bitcoin exchange market and its traders as explained in Cointelegraph’s recent article entitled “Bitcoin Price Roller Coaster: US Panics, China Shows Resilience,” the Chinese market couldn’t withstand the declining value of Bitcoin in the US market, which is substantially larger than the Chinese Bitcoin exchange market.
However, the price of Bitcoin began to recover as the Huobi and OKCoin announcements were embraced and as an increasing number of users began to realize that exchanges are simply not secure and efficient platforms to store Bitcoin.
By law, Bitcoin exchanges are required to build a platform wherein exchange operators are given authority to control user funds. Thus, Bitcoin stored in Bitcoin exchanges can be described more like an IOU, a signed document acknowledging a debt, rather than actual Bitcoin.
Less than a week has passed and Bitcoin is close to its initial all-time high price of $1,060 and is currently hovering at $1,034.