Bitcoin Push Hangs in the Balance After Correction

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BTC experienced a $1,125 drop in the space of 12 hours yesterday, undoing the quick burst to $12,325 that it experienced in the early hours of Tuesday and ending the week-long rise that has seen it move from sub-$9,600 to the third-highest value this year. Tuesday’s jump was followed by a sharp correction that brought with it the suggestion that further downside might be coming, although geopolitics may have something to say about that.

Bitcoin Push Hangs in the Balance After Correction bitcoin

BTC Recovers, But Will it Last?

The answer to where the correction might end is, for now at least, $11,230, from which BTC recovered nicely to $11,700, suggesting the momentum is still with the bulls. Traditionally a topping out candle like we saw yesterday results in a period of downside or, at best, consolidation, especially after such a long run, but the speed of the recovery is potentially suggestive that bulls aren’t done yet. BTC has however hauled itself up right into an area of resistance, so it might take a couple of goes to break through. The rest of the week’s moves might depend on fundamental influences however such as the US’s escalating trade war with China, which we have seen has had the ability to impact the crypto market dramatically.

Crypto Fear & Greed Index on Aug 07, 2019

Community sentiment, which drives the crypto market more than any other in the world, seems split on where we go from here, suggesting it might be wise to be on the sidelines for now as we wait to see which direction BTC goes in after the recent rise and halt. This position is backed up by the Crypto Fear and Greed Index which stands at an inconclusive 45.

Alts Continue to Flounder

Alts continued to be buffeted around by BTC’s swings, although the news that Coinbase was considering eight coins for listing had a nice impact on some prices, with MATIC and ONE both seeing around 50% jumps, showing that the Coinbase effect may not be dead after all. Otherwise with alts it was the same old story as BTC’s movement dictated their path, with little to no sign of any meaningful breakouts on the horizon, suggesting that BTC is still the king and will continue to be for some time.