$6,000 a Crucial Support Price for Bitcoin, Says Canadian Crypto Fund

After the intense downward spiral that Bitcoin experienced to $6,000 following its similarly-intense rise to above the $8,000 barrier on July 25, a Canadian fund called the Rivemont Crypto Fund decided to provide its thoughts on the situation in an update to investors posted on Friday.

“After the rapid correction of the last two weeks, a rebound that could be described as technical rather than fundamental is predictable. This is also the action we can observe since Thursday. It is too early to know if this will translate into a rebound on the strong support around $6,000, or if it is only a temporary relief from the current trend… It goes without saying that the support around $6,000 is crucial. A period of consolidation is normal and even desirable after the incredible rise seen in 2017. Any price above this threshold remains positive in our eyes for future price action,” the fund wrote on Facebook.

It’s worth noting that the Rivemont Crypto Fund—Canada’s only actively-managed fund for cryptocurrencies—previously held 91% of its assets in fiat the last time we checked on the organization.

It appears now that the fund has gained a little more trust in the cryptocurrency market, with 19.4% of its holdings in Bitcoin and 8.2% in Ether. That leaves a 72.2% stash of cash to hedge against any consequences in its investment in the market.

This signals that the fund is cautiously optimistic about Bitcoin’s growth over the next few months, perhaps also anticipating a decision from the SEC regarding BTC ETFs towards the end of September.

Looking at Bitcoin’s price movements since Friday, it appears as if though the fund is right to have this attitude towards the cryptocurrency. However, only time will tell whether these predictions pan out.