Bitcoin (BTC) has hit six-month lows, sparking new interest in the cryptocurrency and growing search trends. Since the beginning of last week, BTC has slumped 20 percent on the USD – and monthly losses add up to 30 percent.
On Sunday night the currency hit a six-month low of $6,515 (£5,059.97) per bitcoin.
This comes as the cryptocurrency was last week hit by a severe warning in China.
The People’s Bank of China warned on Friday it would be cracking down on bitcoin and crypto trading in the country.
A statement read: “Once [bitcoin or cryptocurrency trading] is discovered, it will be disposed of immediately, and it will be prevented from happening early.
Read More: CRYPTOCURRENCY: China calls on Huawei to help with crypto ambitions
“Why you may ask? If you zoom out and look from a much wider angle, it’s a way of trying to understand which boundary is being tested next.
“There’s almost infinite complexity in these kinds of young technology markets, sentiment, manipulation, adoption, accumulation all intertwine.
“Currently the market is testing the lows, not because of China (the China news has been a thing since 2011 and it never really has any major sway on the market) but because we tested the highs, it’s as simple as that.
“We essentially went from $5,000 [£3,883.33] dollars to $13,500 [£10,484.98] in 3 months and now, like the swing of a pendulum, the market wants to know where the bottom is again.
“In my opinion, we are in the early stages of a bull market, you’ll see that the bottom this time around is much higher than $5,000 [£3,883.33].
“We will find higher lows all the way back to all-time highs.
“Let’s understand that we will regularly oscillate up and down like this and every time a major move happens perhaps it’s folly to seek for and ascribe a reason from outside the market.
“In such a market there is really only one strategy, buy when the market is testing a low, sell when the market is testing a high and hodl in between.”
What is a bull run?
The term bull market or bull run refers to stock markets experiencing a sustained rise in share prices.
This happens when investors believe a positive trend will continue into the long-term.
To be “bullish” is to have a positive outlook or to be optimistic.
The opposite if this is a bear market, where there are lower highs and lower lows as investors are cautious.
This is where people are more likely to sell than buy – and an example of this was bitcoin’s downturn at the beginning of 2018.
These terms apply to stock markets across the spectrum, including cryptocurrency.