THE PATH OF LEAST RESISTANCE FOR BITCOIN
Yesterday, bitcoin fell more than 1000 points. It found its support at the $10,155 level. This drop was purely technical since there was no major negative market-moving data. Potentially, this drop came as traders took profits following a more than 50% gain.
Today, bitcoin has recovered from some of the losses after reports emerged that Bitfinex and Coinbase were introducing a new software to reduce transaction costs by more than 20%. As you possibly know, one of the reasons why cryptocurrencies exist is to make transactions cheaper but this has not been the case. With reduced costs, there is a likelihood that more people and companies will adopt bitcoin.
The adoption of Segwit by these exchanges will ultimately increase the transaction speed, reduce costs, and help create a more vibrant community.
Therefore, with positive news coming internally from exchanges and externally from regulators, in the short term, bitcoin is likely to continue moving up.