Bitcoin Price Clings to $11,000 As Analysts Prepare For 40% Price Correction
Bitcoin (BTC) led major cryptocurrencies on a fresh downward spiral July 1 after markets halted support above $12,000.
Market visualization courtesy of Coin360
Data from Coin360 shows ₿itcoin has lost its grip on the $11,000 mark as of press time, trading around $10,950 having gone as low as $10,680.
Conditions remain volatile this week, with last week’s peak of $13,800 still unchallenged. Now, attention is turning to a long-term retracement, which one analyst claims could bring BTC/USD down to just $6,600.
Previously, talk was of a lighter correction which would focus on the $9,500 area. Bullish forecasts for further growth also began appearing, with Fundstrat’s Tom Lee leading calls for a new all-time ₿itcoin price high in 2019.
Now, however, it would appear various factors have converged to put downward pressure on ₿itcoin. Among them, data shows the supply of stablecoin tether (USDT) has doubled this year; increased tether issuance tends to result in both ₿itcoin price gains and volatility.
Josh Rager, the analyst and investor increasingly known for his ₿itcoin predictions on social media, added to the overall sentiment that the cryptocurrency was about to take a break from its bull run.
On the plus side, he argued while uploading a fresh BTC price chart, lower levels would provide a fresh opportunity to accumulate coins.
“Weekly close looks ugly, you’ll likely see this shooting star type of doji… Which typically is a signal for reversal & we could see a couple of down weeks for ₿itcoin,” he summarized.
Bitcoin 7-day price chart. Source: Coin360
Regardless of price movement, ₿itcoin’s technical factors continue to impress, with hash rate again reaching an all-time high in recent days. As Cointelegraph previously reported, the statistic provides a reliable indication of the overall health of the ₿itcoin network.
After a turbulent week for traders, meanwhile, altcoins again failed to rally on Monday, instead following ₿itcoin to greet them with yet more losses.
Ethereum (ETH) fell 5.9% to lose support at $300, while the majority of the top twenty cryptocurrencies by market cap saw falls of between 5% and 7%.
Ether 7-day price chart. Source: Coin360
On Friday, as Cointelegraph noted, veteran trader Peter Brandt had warned altcoin markets would likely never recover or even match ₿itcoin’s price growth, in opposition to behavior during previous bull cycles.
For Brandt, alts were experiencing their own version of the dot com boom of the early 2000s, and only a few would ultimately prevail.
Published at Mon, 01 Jul 2019 08:24:00 +0000
