Over the past 24 hours, the Bitcoin news section of our website showed that the most dominant cryptocurrency managed to retrace its value and go from $4,000 to $4,500, rising 12% in what many saw as a last attempt to recover from the downward trend.
After two weeks of massive selling action, Bitcoin surged as much as 7% initially – establishing an intraday high of $4,645. Later on, the price consolidated above $4,500 which is where it still stands.
As experts say, the chances of a further bull correction are slim – mostly because of the trading activity at BitMEX. The derivatives platform currently dominates the Bitcoin trading volume and has so far processed around $5.3 billion worth of trades. In short, the action shows that traders are willing to short their Bitcoins in the future markets which could lead to an extension of the current downward trend.
As Bitcoin consolidates, many believe that it could test the $5,000 level in a new recovery. Similarly, a bounce back from the support could also lead Bitcoin to the $4,000 price margin or easily below it. However, the $65 billion that was wiped from the crypto market certainly allowed Bitcoin to take a beating – and as we said – any chances of a recovery are slim now.
As always, our advice is to trade safely and monitor the price action on our DC Forecasts Bitcoin news site!
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