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Bitcoin Price Stabilizes at $6,700 as Cryptocurrency Market Slips

Bitcoin price steady


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On April 9, the bitcoin price recorded a minor drop from $7,100 to $6,700, by around 4 percent. The $400 drop in the bitcoin price was not expected by investors.

Bitcoin Fundamentals

Yesterday, various technical indicators and momentum oscillators pointed toward short-term stability for bitcoin. The relative strength index (RSI) and Williams’ Percent Range (WPR) demonstrated significantly oversold conditions, as the RSI neared 30 and WPR remained relatively high at 75 percent.

Despite the oversold condition in the bitcoin market, bears continued to push sell volumes across major cryptocurrency exchanges, leading bitcoin to record a slight drop in value. Traders were anticipating the $6,500 resistance level closely, as breaking that mark could have led the price of bitcoin to near the $6,000 mark.

The bitcoin price recorded a bounce at $6,610, rising by more than $100 and leaving the opportunity to recover back to the $8,000 region within April open.

Fundamentally, bitcoin remains strong, with increasing adoption in regions like the US, Japan, and South Korea. Institutional investors, who have not been interested in the cryptocurrency market throughout the entirety of 2017, have started to enter the cryptocurrency sector.

This week, it was revealed that $8 billionaire George Soros and his fund, Rockefeller family and its venture capital firm Venrock, and the Rothschild family have started to invest in the cryptocurrency sector. In an interview with Fortune, Venrock partner David Pakman stated that the family is interested in investing in the cryptocurrency space for long-term profits, not short-term gains.

“We wanted to partner with this team that has been making investments and actually helping to architect a number of different crypto economies and crypto token-based projects. There are a lot of crypto traders in the market. There are a lot of cryptocurrency hedge funds. This is different. In fact, to us, it looks a little bit more like venture capital,” said Pakman.

Analysts and media outlets in the traditional finance sector have attempted to justify the recent price movement of bitcoin with irrelevant news such as Bank of America Merrill Lynch describing bitcoin as a bubble. However, bitcoin and the rest of the cryptocurrency market are not dependent on these events as much as they were in its early phase in 2013.

Four years ago, the comment of JPMorgan CEO Jamie Dimon on bitcoin led the price of the digital currency to fall by a significant margin. Since then, every imaginable financial institution and analyst have condemned bitcoin, and such statements no longer affect the price of bitcoin negatively.

Market Supply and Demand

The cryptocurrency exchange market is more liquid than most regional stock markets, and the market moves by supply and demand. Currently, the volumes on most major cryptocurrency exchanges are low, and the low volume is the primary reason behind the current bear cycle of the cryptocurrency market.

Once volumes begin to pick up as the over-the-counter (OTC) market continues to prosper, the price of cryptocurrencies will be able to recover.

Featured image from Shutterstock.

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Institutional Investor: Crypto Will be Worth Trillions, Launches Hedge Fund

After leaving his position as an executive at Steven Cohen’s Point72 hedge fund, Travis Kling decided to start his own crypto-focused fund. This was a big and bullish announcement back then, but it still wasn’t enough to save the crypto market, which crashed only a month later. The following nine months were almost completely ruled by the bears, which has brought a lot of damage to the crypto world. Still, according to new reports, Kling has never given up on this project, and it seems that he will finally be ready to launch the new hedge fund over the next month. The dates have not been set yet, and it is possible that the fund’s launch will be as soon as in about two weeks. Former Point72 Manager Plans the Launch of His Own Crypto Fund The fund has been expected for a long time now, and according to what is known, it will be based in Delaware. Some reports even managed to find out that the name of the fund will supposedly be “Ikigai”. While nobody known for sure when the fund’s launch is actually going to be, it is known that it will happen in October. At first, the fund will be backed by a certain amount of capital that Kling’s unnamed partners have invested. However, later down the line, after the project starts its development properly, Kling plans to search for additional investors. Additionally, he will also add $15 million on November 1st, according to the reports. Eventually, by the time the mid-2019 arrives, Kling hopes that the fund will grow and expand to around $100 million. He even expects Ikigai’s venture branch to rise to $33M in capital invested. As for the foreign investors interested in the fund, they will be capable of allocating capital through investment vehicle based on the Cayman Islands. A Multi-Trillion Asset Class? During one of his recent interviews, Kling stated that he truly believes in the project, as well as the concept, and those willing to back it. This, more than anything, indicates that the project is more than just an attempt to generate large profits. Kling stated that he expects this to become a multi-trillion asset class that will expand to touch everyday life. He stated in an interview: It’s still very early, but the development and growth of this technology will be exponential. The firm will have a 13-person team that is said to be located in Los Angeles, while the fund will seemingly follow the regulations implemented by the Delaware government. Many believe that Ikigai’s launch will come on October 1st and that most of the allocated capital will remain in cash, at least at first. This is due to the fact that the investors are still trying to find a secure way into the crypto world. The post Institutional Investor: Crypto Will be Worth Trillions, Launches Hedge Fund appeared first on NewsBTC.

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