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Will Bitcoin Rise Above the $2,500 Mark Again?

Bitcoin, the ever-popular cryptocurrency, can be a volatile asset to trade. Many traders opt to use capital protection tools such as stop-loss orders to help prevent or limit losses, safeguarding their funds. But despite the risks associated with Bitcoin, it remains a popular asset and is the most traded cryptocurrency in the world.

To invest in this virtual currency, traders are turning to a growing number of cryptocurrencies brokers. In addition to being able to trade Bitcoin, some brokers, such as UFX, also allow you to fund your trading account with the digital asset.

This year, the value of Bitcoin surged, approaching the $3,000 level. The virtual currency recently hit a price of $2,733, and since March, exceeded the value of Gold. However, Bitcoin recently dropped slightly, correcting its previous bullish momentum. At one point, it even fell below $2,000, sparking fears that it had entered a bear market. Traders are now wondering whether Bitcoin still has the potential to rise above the $2,500 level once again.

It’s important to keep in mind that major Bitcoin price fluctuations are very common and can be entirely unexpected. In mid-July, for example, a simmering dispute amongst Bitcoin miners about the blockchain technology underpinning the alternative coin industry caused prices to dip to unexpected lows. Bitcoin then rallied, regaining its lost ground in just 5 days, following a period of losses that had pushed the asset below a key support level.

Developers are currently working on improving the scalability of Bitcoin networks by increasing block sizes. New software package SegWit2x was created to allow faster speeds whilst maintaining security against hackers. However, the sudden emergence of Bitcoin Cash, which has increased block size from 1 megabyte to 8, has now thrown a spanner in the works.  August 1st is the deadline for the implementation of SegWit2x, and a schism in the Bitcoin community now appears likely.

So can Bitcoin rise above $2,500? Some analysts say that the recent price rise is simply a rebound, and many traders remain bearish on the asset, especially considering the lack of widespread support from software developers.

By observing the evolution of Bitcoin prices, it’s evident that dramatic rises are often swiftly followed by corrections. Even if Bitcoin does surpass $2,500, traders should remain vigilant. While large fortunes have been made on the cryptocurrency markets, other speculators have incurred significant losses. Therefore, it’s important for traders to understand the complex factors than can cause major price fluctuations in order to make more informed decisions.

Aside from technological innovation, government regulation, media influence, and the ever-present threat of market manipulation, all play a part in determining the value of this uniquely volatile asset.

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