- Bitcoin is trending sideways after yesterday’s price drop of more than $1,500 to $10,500.
- Analysts expect a further consolidation along the $11,000 mark without a further correction following.
- At the $11,900 mark, a CME gap has formed that Bitcoin could close in the near future.
Yesterday Bitcoin managed to break through the $12,000 mark, but after a short time it fell by $1,500 within a few minutes to a temporary $10,500. At the time of writing, however, the Bitcoin price has stabilized along the $11,000 mark and now trades at $11,222.21. The market capitalization has fallen from $214 billion to $208 billion.
Analysts agree that investors should not panic after yesterday’s price drop. Experienced Bitcoin trader Josh Rager describes that the recent correction is only 15% and that in the past corrections of up to 30% have been seen in just one day after such bull runs.
The latest Bitcoin pullback was only 15%
There were at least six pullbacks of 30%+ or more last bull market uptrend
Everything is going to be okay
— Josh Rager 📈 (@Josh_Rager) August 2, 2020
“HornHairs” also states on Twitter that the Fear & Greed Index has risen sharply in recent days due to the current price developments of Bitcoin and the crypto market. In his opinion, the current situation should not be used to take profits too quickly, as Bitcoin must first show a clear trend in order to make an informed trading decision. He does not think that the price will continue to fall in the next few hours.
The fear & greed index is high now, *relative* to the time it has existed (in a larger BEARISH cycle). We may have yet to see the highs that it can reach. In the context of a potential new bullish cycle I don't think using it as a reason to fear a major selloff makes since. $BTC pic.twitter.com/8cDygPMfQL
— HornHairs 🌊 (@CryptoHornHairs) August 2, 2020
Another interesting but also controversial development was observed by “Big Chonis Trading”. At the Chicago Mercantile Exchange (CME), another “gap” appeared at the weekend, as the platform was closed as usual on the weekend. These so-called CME gaps occur when the closing price on Friday reaches a significantly different value than the opening price on Monday.
This weekend, a gap at the level of $11,900 has been created that Bitcoin could close in the next hours or days. This technical indicator is controversial in the Bitcoin community, but is considered another tool to predict price movements. Whether Bitcoin will actually fill the CME gap remains to be seen.
$BTC (CME ) – if #bitcoin were to hold in this area for a few more hours the CME would have a gap down from Fridays close. Arguably the one at $11,900 has not been filed yet since this market was closed over the the weekend . Still gaps in the $9k $7 and $3Ks…yep pic.twitter.com/CUBxmhQJUB
— Big Chonis Trading😷 (@BigChonis) August 2, 2020
Bitcoin Trader “Byzantine General” has identified 3 important price levels to which he tries to stick. Should Bitcoin fall to $10,500 again, he will buy BTC again and “hodl” for the next weeks. If Bitcoin manages to break through the resistance along the $11,500 mark, the next target is the $14,000. If Bitcoin manages to break through the last major resistance at $14,000, Bitcoin could reach a new all-time high this year.
This is currently my map for $BTC
▪️ 10500 is the best place to sell kidneys and buy with all you got and forget about it
▪️ Break 11500 and we go to 14000
— Byzantine General (@ByzGeneral) August 2, 2020
Grayscale continues to buy BTC, ETH and XRP
As Crypto News Flash already reported, Grayscale has bought three times the amount of new BTC since Bitcoin Halving than was produced in the same period. In addition to Bitcoin and Ethereum, the latest overview of the trust shows that Grayscale has bought twice the amount of XRP within a week, thus betting on a possible rising XRP price. In total, the company holds cryptocurrencies worth $5.2 billion.
07/31/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) July 31, 2020
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