Market Analysis

Bitcoin Price: What Next After $7k Failure?

from The Bitcoin News 5 years ago 0 0 703

The Bitcoin price is looking to end August around the middle of its trading range. We saw Bitcoin price start the month just above 7700 and it was a steady downhill turn for the first 13 days. The market then consolidated around the 6400 mark before climbing back above 7000, only to see sellers come back into the market.

While many are disappointed with the August Bitcoin price action, we are not. Here are the positives:

There’s no way around it. Etherum is a sh#t show. The 350 support zone from March/April was critical and Ethereum has been depressing ever since breaking 350. So far 250 has held, but 300 failed as anyone watching and following the market could tell – there are just no buyers above 300 and no interest in initiating new positions.

Most news outlets, including us at Global Coin Report, reported that the most likely reason is the ICOs that raised money at the beginning of the year when ETH was over 1000 and are now dumping their positions trying to bank some money. For most of the year, whenever we talked to ICOs and crypto people in general, the consensus was that ETH was heading back above 1000. At the end of August and with prices under 300, that doesn’t look like it’s happening this year. Matter of fact, judging from the price action and the overall tone of the market, we believe ETH will test 200 sooner rather than later.

We know this is not reassuring to investors and we are not betting against the market. We are in fact long ETH and are just HODLing our position and steadily adding to it each week. This is really the best advice that we can give – best off averaging in during a bear market and wait for the bull to come. When that time comes, no one knows, but it’s best to be prepared and by prepared, we mean HODLed.

At this point, we have to be honest, there isn’t much to get excited about. We won’t get bullish until we are back above 7200. A move above 7200 will send more shorts covering. The good news is that the shorts have already started covering and we are seeing them reduce their positions. We believe that the short covering burn that happened last week has scared many. However, if we see Bitcoin continue to drop, they might get aggressive again and resume shorting again.

We wish we could provide better news, but the current price action doesn’t warrant it. We expect prices to consolidate further and see the Bitcoin price most likely test 6400 again. This will most likely come as a result of selling pressure in ETH and altcoins. Unfortunately, it doesn’t look like this bear market is over and we will have to continue weathering the storm. As always, we will be updating our readers daily here at Global Coin Report with the latest updates and market changes.

Happy Trading~

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer. This author is long Bitcoin and Ethereum.

Image courtesy of Andreas Komodromos via Flickr

Charts courtesy of tradingview.com

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