$6,500: Bitcoin Recovers But Downtrend Is Strong

The crypto market seems to be recovering as the price of Bitcoin recently rebounded to $6,500 and Bitcoin Cash hit $605.

Still, the decline in the crypto market is present mostly because of the low market volume. Since July 29th, the price of Bitcoin has been freefalling. It dropped from more than $8,300 to $6,300 within two weeks.

Several other cryptocurrencies have started falling as well. The drop in value is steeper for tokens which lost 30 to 40 percent of their price in about 12 days. Over the past eight months, the crypto market and the most dominant cryptocurrency Bitcoin have seen similar trends and price movements in identical ranges.

Price manipulation is a huge possibility right now, especially because of the suspicious movement of BTC in the over-the-counter (OTC) market – which is two to three times larger than the cryptocurrency exchange market.

However, what many analysts agree on is the fact that a Bitcoin price drop is always timed exactly after an important piece of event or news such as the disapproval of the Winklevoss Bitcoin ETF and the VanEck ETF which both happened over the past 30 days.

Right now, it seems like the downward trend of the crypto market is strong and therefore, it is difficult to see a corrective rally initiated in the short run.