Categories: Bitcoin

Bitcoin and Major Crypto Recover But Downtrend is Strong, $5,800 a Target?


On August 8, the crypto market seemed to be improving, as Bitcoin price has been on a free fall, dropping from $8,300 to $6,350 within a two-week period. Other major cryptocurrencies and tokens experienced a more steeper drop in the value, losing 30 to 40 percent of their price in merely 12 days.

Throughout the past eight months, since January, the cryptocurrency market and its most dominant cryptocurrency Bitcoin have seen similar trends and price movements play out, in identical ranges.

On February 6, the price of BTC dropped to $6,000, but recovered to $11,000 within a month. In April, the price of BTC fell again to the $6,000 region, in a period of 30 days. In May, BTC peaked at around $11,000, only to drop back down to $6,000 a month later. The price of Bitcoin has been moving in between $6,000 and $10,000 since January, as if large-scale investors in a market outside of the public cryptocurrency exchange market have been manipulating the price of BTC.

Based on the suspicious movement of BTC in that price range and the fact that the over-the-counter (OTC) market is two to three times larger than the cryptocurrency exchange market, it is difficult to dismiss the possibility of price manipulation.

Moreover, the drop in the price of BTC has always been timed exactly after an important piece of event or news, such as the disapproval of the Winklevoss Bitcoin ETF or the VanEck ETF, which on their own are evidently not sufficient to impact the cryptocurrency market in any major way.

If the price movement of BTC in the short-term plays out the same way as February, April, and May, BTC will likely fall below $6,000 in the upcoming days, possibly bottoming out at $5,700 to $5,800, as several analysts suggested. Successfully securing a support level at $5,800 could enable Bitcoin to climb up to major resistance level in the $7,000 and $8,000 region, in the mid-term.

As of current, the downward trend of the crypto market is overly strong and it is difficult to see a corrective rally being initiated in the short-term.

Short-Term Trend

As Bitcoin continues to move in a downward trend, other major cryptocurrencies and tokens are expected to demonstrate a larger decline in their value. Some analysts have suggested that Coinbase may integrate Ripple (XRP) in the near future, but the market has seen similar rumors in the past, which never managed to materialize.

Given the hype around Ripple and EOS being added to Coinbase is increasing, it is likely that the market sees the price of XRP and EOS rise in the near future, but inevitably drop when Coinbase clarifies on its stance on the two cryptocurrencies, once again.

Featured image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.
• Join CLC’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from CryptoLiveClub? Click here.
• Open Positions at CLC: Full Time and Part Time Journalists Wanted.

Advertisement
Disqus Comments Loading...
Share

Recent Posts

NSW Registry Manager to Test Land Conveyancing on a Blockchain in Australia

The land registry manager of New South Wales in Australia has partnered with a blockchain technology firm with a view…

1 min ago

Crypto Exchange Giant Coinbase Opens Office in Ireland

Cryptocurrency exchange Coinbase has opened a new office in Dublin to mark its latest expansion into Ireland as a marked…

46 mins ago

Binance Uganda to Begin Accepting Deposits in Ugandan Shilling, BTC & ETH

Months after announcing the launch of Uganda’s first-ever fiat-crypto exchange, Binance has made another step towards facilitating cryptocurrency trading in…

3 hours ago

Crypto Market Stabilizes as Tether Recovers, Real Bitcoin Price at $6,450

The crypto market has stabilized after a wild 24-hour period triggered by the sudden increase in the price of Bitcoin.…

6 hours ago

DocuSign Will Add Ethereum Blockchain Integration to Verify Signatures

San Francisco based DocuSign has announced the integration of the Ethereum blockchain into its electronic signature and transaction management service.…

9 hours ago

Soaring Inflation Sends Bitcoin Trading Volume to New High in Venezuela

The amount of Venezuelan bolivars being spent to purchase bitcoin has risen to record levels as the South American country…

10 hours ago

This website uses cookies.