Bitcoin value slips into danger zone | City & Business | Finance


On the back of an already poor week for BTC where it suffered a 6 percent fall across seven days, there had been hope among traders for a bounceback away from the $8,600 to $8,400 that threatened to drag it down into a dogfight over the $8,000 line and the potential for a death cross.

A death cross (a chart pattern indicating a strong potential for huge sell-off) at this stage could prove catastrophic for the price of bitcoin, particularly as the trading volume appears unusually low.

The likelihood of that playing out took a step closer last night as a bearish sentiment gripped the market.

Seemingly settled and looking, perhaps, to build at around $8,550, BTC took a sudden stumble that looked like it would take the price to below $8,000, although a line of resistance was found which did enough to catch bitcoin at $8,100.

A drop of $450 overnight is an awful lot of bloodshed to recover from, so another tumble could well be on the cards.

Some familiar patterns are starting to creep into the charts once again – particularly the Monday blues which have often become traditional bear territory for cryptocurrencies, almost reaching the point where traders are half expecting the week to begin with a fall in value.

There are clearly plenty of buyers waiting in the wings to capitalise on the dips – as witnessed last night when the fall was arrested at $8,100.

However, judging by the lack of robust trading volume, it would be safe to assume there are plenty more holding out hope for further dips into the $7,900 or $7,300 region before stepping in and driving the price higher.

One cautionary note here, though, is the potential for a devastating death cross. Couple that potential bump in the road with the lack of trade volume – currently little more than a third of what it was last month – and there’s a serious case for claiming market apathy.

While most analysts will be seeing ways for bitcoin to back itself out of this uncomfortable corner, it’s worth keeping in mind that the momentum here looks keen to drive the price down.

• Coin Rivet is a website bringing news, information, analysis, opinion and insight from the fast-moving blockchain world.



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