Home / Crypto Currency / Is Crypto Market Bottoming Out? Bitcoin Shows Stability at $6,500

Is Crypto Market Bottoming Out? Bitcoin Shows Stability at $6,500


Bitcoin price

Advertisement

Earlier this week, the crypto market seemed to be initiating a strong corrective rally, as Bitcoin breezed past $6,500.

However, in the past 24 hours, the crypto market demonstrated a slight decline in value from $204 billion to $198 billion, as small market cap cryptocurrencies and tokens struggled to maintain momentum.

While the crypto market eventually recovered to $202 billion, the price movement of major cryptocurrencies on September 15 showed that the market is undergoing a bottoming out process, demonstrating volatility in the low price range.

Bottoming Out

As CCN reported, billionaire investor Mike Novogratz stated on September 14 that the crypto market has already reached a bottom at the $186 billion mark and is ready to initiate a new mid-term rally.

“This is the BGCI chart. I think we put in a low yesterday. retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble… markets like to retrace to the breakout..we retraced the whole of the bubble,” Novogratz said.

Similar technical indicators have shown highly oversold conditions for the crypto market, suggesting that in the upcoming days, as long as the volume of the market can be maintained, a rally is due.

But, as seen in February, April, June, and August, an abrupt increase in the price of Bitcoin is not beneficial for the market. It is important for major cryptocurrencies to properly bottom out and stabilize in the low price range before gradually increasing in value and volume.

Luke Martin, a widely recognized technical analyst in the cryptocurrency sector, stated that the next resistance level for Bitcoin is at around $6,900, based on the trend of BTC since early 2018.

Martin explained:

“Pattern of the BTC bounces from $6,000 lows this year. Each subsequent bounce has been weaker taking us to the 61.8% fib retracement level of the move down. (first bounce only a 50% retrace) 61.8% retrace of most recent drop puts BTC resistance $6,940.”

If Bitcoin can continue to remain stable in the mid-$6,000 region, it is likely that BTC surpasses the $6,900 mark in the short-term. But, if th volume of Bitcoin declines below $3 billion and the rest of the market struggles to regain momentum, it is also possible that BTC remains in the $6,400 to $6,500 range.

Tokens

Throughout the past week, tokens have continuously shown oversold conditions, recording large losses against BTC apart from September 13 when tokens like ICON, 0x, and BAT recorded relatively large gains.

While the performance of tokens largely depend on the momentum of BTC, as long as BTC moves towards the $6,900 resistance level in the upcoming days, which is likely given the trend of the market since February, a strong performance by tokens is expected.

Nano, Maker, Decentraland, and 0x demonstrated gains in the range of 5 to 10 percent against BTC, while the majority of tokens in the market demonstrated stability in their low price range.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Advertisement
Read more

Check Also

Exclusive: BitPay Partners BTC.com, Brings Bitcoin Payment Protocol to a Million Users

Bitmain subsidiary BTC.com has become the latest bitcoin wallet provider to adopt the BIP70 transaction framework, enabling the company’s 1 million customers to send payments to businesses in cryptocurrency payment processor BitPay’s $1 billion merchant market. BTC.Com Adopts BIP70 for Commercial Bitcoin Payments Originally proposed in 2013 by early Bitcoin developers Gavin Andresen and Mike The post Exclusive: BitPay Partners BTC.com, Brings Bitcoin Payment Protocol to a Million Users appeared first on CCN

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.