Cryptocurrencies

Bitcoin struggles around $8,000 amid worst week since 2018

Bitcoin has suffered its worst weekly candle since December 2018 after falling to $8,000 just days after Bakkt launched its Bitcoin futures product.

Price is currently being propped up by the 50 exponential moving average (EMA) on the weekly chart, which is residing at $7,850.

The recent price action is eerily reminiscent to that of December 2017, when Bitcoin dramatically dropped from $20,000 before making consecutive lower highs and eventually making a 70% move to the downside.

Another similarity is that a Bitcoin futures product was launched on both the CME and CBOE in 2017. The fact that institutional traders finally had the opportunity to short an illiquid asset like Bitcoin ended up driving the price much lower.

This time around, although Bakkt’s launch hasn’t been met with the expected volume, it was another event that could have tempted traders to ‘buy the rumour and sell the news’.

From a technical perspective, Bitcoin needs to remain above $7,900 with a preferable bounce above the 200 EMA on the daily chart, which is currently at $8,745.

This would indicate significant interest from buyers at this level and that a correction into the mid $6,000 range or even $5,200 is increasingly unlikely.

For more news, guides, and cryptocurrency analysis, click here.

Oliver Knight

Londoner ‘Ollie’ graduated from Birmingham City University with a journalism degree in 2016. He combines his writing with his love of crypto and blockchain here at Coin Rivet, saying “It disrupts well-established institutions (banks) while giving an avenue to the less fortunate to achieve financial freedom.” Like all true Londoners, his pet hate is… “People standing on the left-hand side of the escalators on the Tube!”.

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