Sun. Aug 7th, 2022

The price of Bitcoin has been trading in $7 000-$7 400 range in the last several days and according to technical analysis, the downtrend is still very strong. The cryptocurrency market volatility is also one of the things that scares investors away and this is one of the reasons why the market is under the pressure. Bitcoin is the first cryptocurrency to have existed and receive wide acceptance. Bitcoin can be accessed by everyone on the internet and this cryptocurrency enjoys the support of both developers and users communities. Bitcoin was accepted as a legal payment method in Japan and some other countries also expressed interest to accept this cryptocurrency as a legal payment method. Every day, more businesses accept Bitcoins because they want the advantages of doing so, but the list remains small and still needs to grow in order to benefit from network effects. Until Bitcoin recovers, however, the price of other cryptocurrencies will not see any major developments in the near future. The price of Bitcoin currently stands around $7 250 and the first strong sign of recovery could be if the price jumps above $10 000. In the chart below (a period from December 2018), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $8 000, $9 000 and $10 000, $7 000 and $6 000 represent the strong support levels.

Bitcoin remains in the bearish phase but if the price advances above $10 000 it could be a good sign of the trend reversal. If the price drops again below $7 000 strong support that would be a strong “SELL” signal and the open way to $6 000. Bitcoin is still very risky, I also think that there are lots of other cryptocurrencies with bigger potential and with less risk.

Recommendation: The cryptocurrency market remains under the pressure and it is important to say that the price of Bitcoin is very close to $7 000 support. The last several months have been very negative for the cryptocurrency market, all major cryptocurrencies have weakened and the price of Bitcoin is also pressured by this situation. The price of Bitcoin has suffered one of the biggest losses on the cryptocurrency market and in less than 30 days the price of Bitcoin has weakened from $10 400 below $7 000. Bitcoin isn’t the only privacy coin competing for market share and some other cryptocurrencies could potentially limit the adoption of Bitcoin. I would not invest in Bitcoin currently, maybe only as the short-term trader with “stop-loss” and “take profit” orders. If the price drops below $7 000 that would be a strong “SELL” signal and the open way to $6 500 and then to $ 6 000. If the price jumps above $10 000 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $9 600 and take profit at $10 800 or above.

https://www.tradingview.com/chart?symbol=BITFINEX%3ABTCUSD

https://www.investopedia.com/terms/b/bitcoin.asp

 

 

By Dov Herman

Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on TrustedBrokerz and across the web.