The relentless charge of Bitcoin halted as the price of the cryptocurrency dipped during this week. Meanwhile other cryptocurrencies gained ground.

The price surge of Bitcoin has eased out after its meteoric surge to $6200 last week. Prices plunged by 10% in the exchanges to $5600, indicating that sanity will prevail in the volatile market place. The 20-day exponential moving average EMA lies at below $5400 so there is some chance that resistance can develop at that level. However, we believe that the current slide could see the price of the cryptocurrency drop to well below $5000.

Big institutional investors have stopped short of investing in bitcoins despite its sharp rise. After JP Morgan boss Jamie Dimon trashed it, Prince Alwaleed of Saudi Arabia who spoke to CNBC said that it was a hoax. He believed that the unrecognized and unregulated digital currency will blow up and be another Enron type financial scandal that will create mega losses for investors.

Bitcoin has its challenges

The cryptocurrency is going to the market once again with Bitcoin Gold. This, after it introduced another variant on the Bitcoin blockchain in an effort to improve the technology by changing how it rewards competition. This was the second round of ‘hard fork’ and grabbed less attention than the August launch of Bitcoin Cash. Consequently, the markets gave a relatively lukewarm response to Bitcoin Gold BTG.