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Bitcoin Price Watch: Currency Settles at $6,800 After Drop to $6,700

Bitcoin is currently standing at $6,800. After a weekend rise to $7,000, the coin’s ascension was halted suddenly and fell back to the $6,700 mark. It has risen by over $100 since yesterday.

The previous rise could be attributed to major financial players getting involved in the crypto space. After repeatedly calling bitcoin a “bubble” and “mere speculation,” wealthy hedge fund manager George Soros gave his company Soros Fund Management a clear path towards cryptocurrency investments and announced that the venture would start trading cryptocurrencies within the coming months.

Considering Soros’ power in the financial industry, it’s safe to say that his previous statements regarding bitcoin’s legitimacy (or lack thereof) delivered some serious gut punches to advocates.

His entry into the crypto-arena ultimately cleared the way for other financial magnates to become involved. Not long after Soros’ announcement, the famed Rockefeller family of New York released the news that their company Venrock – the venture capital firm of the Rockefeller Foundation – would be partnering with cryptocurrency and blockchain advisory firm Coinfund.

Both groups can allegedly bring immense power to the digital asset world, and push it further towards mainstream acceptance and full financial recognition.

Despite this news, it appears the price of bitcoin is “still up for grabs” in a sense, and leaving many analysts examining whether bitcoin is a bubble or an actual currency that could experience recovery in the coming months.

A group of Barclays analysts sits in the former category. They explain that bitcoin’s price is not likely to see the surges it did in 2017, and they compare bitcoin’s previous rise to the spread of infectious diseases, as more investors and one-time enthusiasts ultimately became “immune to its appeal” the way they might become immune to dangerous health hazards.

While this seems like an exaggerated and somewhat over-the-top comparison, the analysts used actual studies from the field of epidemiology (which deals with the spread, distribution and control of infectious diseases), and built their current model around those studies, claiming that the prices “tend to rise when infections spread from one buyer to another.” Ultimately, the power of bitcoin spread mostly via word of mouth, particularly to those who had a “fear of missing out.”

They also say that while the droves of new entrants to the cryptocurrency market did help to improve the overall price of bitcoin, the subsequent crash led to several exits amongst people who are now “immune” to the idea of getting rich overnight. As more time passes, fewer people will be susceptible to the power of bitcoin, and will seek to stay as far away as possible.

The economists summed up their arguments by saying:

“This occurs with infectious diseases when the immunity threshold is reached, i.e. the point at which a sufficient portion of the population becomes immune such that there are no more secondary infections.”

At the same time, cryptocurrency exchange platform Gemini is now rolling out bitcoin and ether block trading as a way of reducing the impact large orders have on the market. This suggests that crypto purchases and trading have not lost all their popularity, as many are still trying to get their hands on as many bitcoins and ether coins as possible.

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Bitcoin Price Watch: BTC Facing Uphill Task Near $3,500

Key Points Bitcoin price is under pressure below the $3,500 and $3,520 resistance levels against the US Dollar. Yesterday’s highlighted crucial bearish trend line is intact with resistance at $3,520 on the hourly chart of the BTC/USD pair (data feed from Kraken). The price may continue to find a strong resistance near the $3,500 and $3,520 levels. Bitcoin price is struggling to climb above the $3,500-3,520 area against the US Dollar. BTC might decline towards the $3,340 support in the short term before higher. Bitcoin Price Analysis There was a slow and steady decline in bitcoin price from the $3,638 high against the US Dollar. The BTC/USD pair was rejected near $3,640-50 zone after it recovered from the $3,253 low. Moreover, it failed near the 61.8% Fib retracement level of the last slide from the $3,851 high to $3,208 low. The price recently declined below $3,520 and $3,480 to enter a short term bearish zone. During the decline, sellers pushed the price below $3,400 and the 100 hourly simple moving average. Besides, the price broke the 61.8% Fib retracement level of the recent wave from the $3253 low to $3,638 high. However, the $3,340-50 support zone is acting as a decent support. On the upside, an initial resistance is near the $3,445 level, above which the key hurdle is near $3,520. More importantly, yesterday’s highlighted crucial bearish trend line is intact with resistance at $3,520 on the hourly chart of the BTC/USD pair. Therefore, the price is likely to struggle near the $3,500 and $3,520 resistance levels. Looking at the chart, bitcoin price may perhaps rise to test the $3,520 resistance before lower. On the downside, if the price finds a strong buying interest near $3,340, there could be a fresh upward move above $3,500-20. Looking at the technical indicators: Hourly MACD – The MACD for BTC/USD is about to move into the bullish zone. Hourly RSI (Relative Strength Index) – The RSI is currently near the 50 level. Major Support Level – $3,340 Major Resistance Level – $3,520 The post Bitcoin Price Watch: BTC Facing Uphill Task Near $3,500 appeared first on NewsBTC.

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