Despite what looked like a possible breakout above the $8500 last week, Bitcoin (BTC) has returned to its predicted wedge pattern moving down to sub $7500 levels in the past 48 hours.
Charts predict this downtrend could continue to around $6000 before support unless external factors such as SEC regulatory decisions create an unexpected upturn. Although short-term investors might see this as a negative sign it indicates natural market fluctuations that should eventually result in a significant rise in the coming months.
Excessive media coverage of Bitcoin ETF decisions by the SEC and Korean tax legislation have been speculated as factors affecting market prices but these shouldn’t be seen as relevant at this time. Current movements reflect a natural progression that long-term investors will see as positive in the long run.
Overall volatility remains within manageable levels and savvy investors will use this downtrend as an opportunity for adding further liquidity to the market. Selling pressure has likely been high in the past few weeks but as BTC nears oversold levels in the following weeks a return to a bullish trend should begin to appear on the horizon.
The fact that altcoins are following the BTC price trend further suggest that these market fluctuations aren’t being affected by external regulatory issues.
Ethereum (ETH) is down almost 4 percent in the past 24 hours, with Bitcoin Cash (BCH) down 6.7 percent, EOS down 2 percent and Litecoin (LTC) suffering a 3.6 percent dip. Stellar (XLM) and Cardano (ADA) have been some of the worst hit with almost a 10 percent loss affecting both.
Ripple (XRP) is the odd one out with a significant spike this morning that saw it add $700 million to its market cap. It has since experienced a minor correction and is currently down 1.3 percent over the past 24 hours.
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