On Thursday morning, Bitcoin (available on Coinbase) price dropped below $7,000 after topping that price level earlier this week. BTC/USD is now at around $6,700 as of 1 PM EDT.
The price decline happened despite news coming out that Bitcoin (available on Coinbase) tracking company Chainalysis just raised $16 million from Benchmark, the San Francisco venture capital that bet big on eBay and Uber when they first started. According to Chainalysis, this move will help the firm ramp up its sales efforts and expand the number of cryptocurrencies it tracks. Market reaction to this financing suggests that perhaps another promising industry — digital currency tracking — has emerged.
Further Weakness Ahead For Bitcoin (available on Coinbase)?
On today’s price movement, further weakness could be expected. What is worrying for Bitcoin (available on Coinbase) investors is that the stock market has already begun to recover following the selloff earlier this week on fears of a global trade war. Historically, the cryptocurrency market tends to move in tandem with the equity market, so a continuing divergence is not a good sign.
BTC is currently on another bearish run after failing to break above $7,000, establishing a major resistance point of $6,900. A support has been tested at around $6,650. However, in the next few hours, we could see BTC trend higher as indicated by the moving averages, though no major gains are expected.
Source: Tradingview
For the technical indicators, both the hourly MACD and RSI are sending a bullish signal in the short term, but the general outlook remains neutral since BTC/USD is still trending downward. A drop below $6,600 today could take Bitcoin (available on Coinbase) even lower, while a breakthrough above $6,900 would likely propel Bitcoin (available on Coinbase) to $7,000 again.
Looking at the Technical Indicators:
Hourly MACD & RSI — Bullish signal
Major Resistance Level — $6,900
Major Support Level — $6,650
Featured Image: Depositphotos/© Paulpaladin
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