Bitcoin (₿) is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto and released as open-source software in 2009. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.Bitcoin has been criticized for its use in illegal transactions, its high electricity consumption, price volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.
Bitcoin has not dropped further but is trading mostly sideways within a narrow range near the $3,600 level. It remains to be seen if Bitcoin will suffer another monthly loss this January as appears to be happening.
Although Bitcoin (BTC) has suffered a modest drop over the last 24 hours after moving up yesterday, technical analysis shows that within the next couple of days there is a chance BTC may test a key resistance level.
Bitcoin's pre-Xmas rally has fizzled out as the price drops well below the $4,000 level and even below $3,700 briefly. Bargain hunters may drive the price up as has happened with the stock market but perhaps the bear downturn will return for a while yet.