Bitcoin may be witnessing a healthy pullback.
After having rallied more than 90 percent from a September low of $2,980, the bitcoin-US dollar (BTC/USD) exchange rate is trading at $5,240 today, a figure that, at press time, marks a new daily low. As per CoinMarketCap, the cryptocurrency has shed 7.37 percent in the last 24 hours. Week-on-week, BTC is up 9.9 percent, while month-on-month it is flashing 29 percent gains.
Still, with prices having jumped above $5,000 (the previous all-time high) on Oct. 12, what we are witnessing today might be best considered a healthy correction, courtesy of overbought technical indicators.
For example, demand for bitcoin jumped last week, reportedly on speculation that the hard fork in November may benefit buyers with the creation of new cryptocurrency (as in August when investors were allotted newly created bitcoin cash).