Following the recent 2019 high for the number one cryptocurrency, Bitcoin dropped by 4 percent and in the latest cryptocurrency news today we find out why.
Bitcoin reached $5,540 only 12 hours ago but it dropped soon after despite the increased demand for the currency from investors. Also, the Bitcoin Investment Trust premium which is a cryptocurrency investment company that has about $1.2 billion under management, increased by 10 percent.
As you can see from the charts, the bitcoin priced went down from $5,400 to $5,200 in less than 12 hours and is currently trading at $5,058. On a daily basis, the largest cryptocurrency by market cap decreased by 1.2 percent and on the weekly charts, we can see that the asset is still up by 6.8 percent.
According to the price analysis, over the past 14 days, when bitcoin started the 20 percent rally, it showed slight retracements from 1 to 5 percent range. It started the rally at $4,200 and reached $5,000. On April 4th, Bitcoin reached $5,261 but it soon fell down by more than 7 percent.
The price analysis shows that Bitcoin is likely facing some issues after starting the upside movement because of the resistance levels hovering above the currency above the $5,000 region.
Technical Analyst Luke Martin believes that the $5,500 price point is a relatively strong resistance level and that the asset should be able to recover above $6,000. He noted:
“For the first time since $1,000 BTC breakout on Apr 1st, [the bitcoin] price is reaching an area that I expect to act as resistance. It’s the only area price paused at after the dump from $6,000.”
Since the price of BTC dropped after reaching the resistance level at $5,500 it seems like the asset will need strong catalysts to boost it past the level and reach to the $6,000 region. In the short-term, if institutional investors decide to pour their capital in bitcoin, the demand for Bitcoin will go up and so will its price.
Also, in the medium-term the recent developments in the crypto industry such as Coinbase issuing its crypto debit cards, could further raise the confidence for the crypto sector from investors.
Ethereum Could Climb Above $200 According To Analysts
- 4 hours RSI – The RSI for ETH/USD is currently near the 40 level, with a few positive signs.
- Major Support Level – $174
- Major Resistance Level – $200
What Drives BTC Below $10k This Summer: Analysis
Bitcoin Cash Is A ‘Wounded Animal’ Right Now: Analysts
“Looks as if it wants to pull a BTC like run soon. As long as it can close through resistance (0.035) I’ll suspect BCH is going to retest blue (0.075) which would be + 150% from here,” he said on Twitter.https://twitter.com/CryptoDonAlt/status/1160645331262070790 Nearly all of the altcoin pairs have a potential, however, since the Bitcoin dominance is still so high, Bitcoin Cash is among the altcoins with the most potential, BCH can register gains and on a shorter time frame will apparently test resistance, as a prominent CNBC trader with a handle 'Big Cheds' noted. https://twitter.com/BigCheds/status/1160681244436381696 All in all, Bitcoin Cash is in our latest cryptocurrency news. Even though it is one of those controversial digital assets that often draws a lot of attention, it is also one of the main altcoins which deserves a place in the spotlight.
“BCH is a wounded, volatile animal. A year from now it will struggle to stay above $100. The project was DOA from day-1. 90% of its market cap is the product of manipulation that will be impossible to meaningfully sustain," as described by the RT Anchor Max Keiser.https://twitter.com/maxkeiser/status/1160712205849059328
Messari Report: BTC Could Copy Gold’s Behavior And Drop Dramatically
“I would not be surprised if BTC performs like gold did 2008-2011.’’McArdle referenced some of the fresh comments that were made on gold by Raoul Pal who is the serial asset manager who presented a buoyant outlook for both Bitcoin and gold during the Stephan Livra podcast. On the topic of gold’s current return to form in line with the number one cryptocurrency, he stated that the markets are now preparing for the dollar’s own winning streak. He tweeted:
“Gold is rightly doing its job, sniffing out a BIG problem and is exploding higher, outperforming even the super strong dollar as gold begins to price in an end game of an eventual MASSIVE readjustment of the dollar (in 12 months? 18 months?).’’As it was reported in the latest cryptocurrency news, the Bitcoin price bull runs since April have started a strong debate once again about the potential long-term and gold-like safe-haven assets. There are now more and more figures that continue to shift into Bitcoin for investors that are looking for a hedge against the inflation that is currently happening. Some of the figures include Circle’s CEO Jeremey Allaire as well as some other consultancy executives this week. For example, Peter Schiff doubled down on his opinion that gold is now better than cryptocurrency. He even took it to Twitter and stated that many customers are not buying Bitcoin because it is a safe-haven asset:
“The Chinese aren’t buying Bitcoin as a safe haven. Speculators are buying, betting that the Chinese will buy it as a safe haven!”
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