Bitcoin Gets A Weekend Haircut As Other Cryptocurrencies Watch and Waitbr>
It was a bad weekend for bitcoin and other cryptocurrencies, as a strong bear run shaved a considerable amount off single coin prices. Add in the gloomy report from Goldman Sachs, which indicated to its customers that further declines may be in the offing, and it was a cruel summer weekend for those holding.
This morning, bitcoin stood at $6,900, down a little more than $600 from Friday’s $7,500 mark. The recent rally that saw bitcoin rise as high as $8,500 is clearly over, and now the question is whether this will mark a floor on prices, or perhaps signal even more bearish levels.
Other altcoins were in a holding pattern. Ether is threatening to go below $400, while other coins in the top ten were basically holding at last week’s levels, waiting to see which way the market will break.
Rabbi Ahmed, head of trading at Bit Trade, an Australian based crypto exchange platform, said that the move lower may portend more bad news on the horizon.
“Throughout the last few months, we have anticipated that the lows for the market will be formed in July. We believe there is a slight chance that the market could break the low of this year (USD$5790), this would need be in the form of a shakeout of prior stops before a capitulation, i.e. a strong change from bears to bulls. The final zone we have for the bottom lies between USD$5400-$4700 if the low of this year ($5750) does not hold.
Ahmed said the crypto market needs new blood to fuel growth.
“The euphoric rally of last year was fueled by “retail FOMO”. Many of the investors bought bitcoin above USD$10,000. These late entrants into the market have now either closed out at losses or have lost interest to re-enter this market with new money. What the market really needs to spark the next bull run is new money, and seeing as most of the late entrants were mums and dads, that new money we are anticipating will be from the institutions.”