The Bitcoin recovery staged by the bulls was hammered by the bears in the last 24 to 48 hours. The bitcoin price have recorded sharp decline in last two days as the hammering has been much stronger which has knocked the market cap of Bitcoin below 110 billion.
Fear of bitcoin breaching USD 6000 looms again
Although a lot of this drop in bitcoin price is related to the sentiment and liquidity pullback by the bulls, the ancillary news regarding Bitcoin and cryptos also wasn’t the best to revive the buying. There was a news that spoke of reversing the trend of GPU prices, Graphics Processing Unit Cards integral to crypto miners. The major reason for this trend reversal has been the slowing interest of people taking up mining. A news not many crypto investors would want to hear.
Another drop that was seen with bitcoin prices was that of Coinbase’s download. The app that peaked at No 1 position on the list of the most downloaded app on App Store and Play Store saw its rate of download dropping to its lowest level among US finance apps. According to Quartz, that reported this news, the Coinbase app fell to 40th place in June download rankings, its lowest download ranking since April 2017. The situation reportedly reflects the fickleness of retail traders, who make up the greater part of the trading volume in crypto markets.
“If technical experts are to believed the major moving averages for bitcoin prices are trending south and are located one below the other in a downward order, giving signs that the sentiment and trend are to the downside”
The Bitcoin price has since crumbled under selling pressure that has been felt across the wider digital currency market.
At the time of writing, the digital currency was hovering around $6,200, according to data from cryptocurrency market Coinmarketcap. The latest downturn has affected the entire cryptocurrency market, with most major coins experiencing similar drops. Most digital currencies in the top 100, including all the top 30 coins, are currently in the red.
What lies ahead for Bitcoin price
This fall also woke up the Bitcoin Doomsday prophets creating not a very conducive environment with their comments. Bloomberg’s Noah Smith and Joseph Carson, the chief security scientist at Thycotic, both believing that there could be a scenario when Bitcoin could go bust.
Commenting on his position, Carson said:
“The most likely scenario is that bitcoin will die; my current valuation of bitcoin is approximately US $43 as opposed to the hyped and manipulated valuation.”
With not much in favor of the Bitcoin breaching, USD 6000 seems only a matter of time. The only light in the tunnel which may help BTC stay above $6,000 is the oversold conditions and a resistance of USD 6000 built last time which marked the return of bulls as that resistance was breached.
Keeping an eye, the price look stabilizing around USD 6200. But in the case is USD 6000 gets reached in next 24-48 hours, there could be some more bearish movements which might bring bitcoin prices to as low as USD 5700. Unlikely though, but if something strong positive news comes to markets, and somehow take the prices above USD 6400 one could also see a reversal for bears as bulls would charge in.
For now, Bitcoin seems to at a spot that would decide its course ahead. Hanging over a small thin line between the bulls and bears, its only time that would decide which side the prices tilt. As there is a short-term fear, the development around does signify long-term positivity for Bitcoin.
Who will win this tug of war between Bulls and Bears and decide the short term trend for Bitcoin? Do let us know your views on the same.