Bitcoin Price: Risk of Reversal Fades as Market Stabilizes Near $7,000
Bitcoin appears to have regained its footing on Friday, as prices briefly crossed the $7,000 handle following yesterday’s minor breakdown. Although the bulls aren’t out of the woods yet, the market remains in an corrective phase based on the technical charts.
The bitcoin price appears to have averted a bigger reversal on Friday, with prices consolidating in the $6,950 region. The leading digital currency traded as high as $7019 on Bitfinex before consolidating slightly lower. Twenty-four hours ago, bitcoin bottomed near $6,800. As Hacked reported at the time, BTC would remain in an uptrend so long as the long-term moving average was maintained.
The technical charts reveal another potentially bullish pattern emerging as the 50-period moving average approaches the 200-period MA. A crossover could ignite another short-term rally in the bitcoin price. The relative strength index (RSI) is back above 50, which signals positive momentum.
At current values, bitcoin has a total market capitalization of $120.3 billion, which represents 53.3% of the entire market. Trading volumes in the last 24 hours reached $4.7 billion.
Crypto Market Stabilizes
The broader cryptocurrency market mirrored bitcoin’s tepid movements on Friday, with most major assets trading within a 1% range. Ethereum, XRP and bitcoin cash were little changed compared with 24 hours ago.
Within the top-ten, EOS and IOTA were the biggest movers. EOS rose 5.3% to $6.17. IOTA jumped 4.7% to $0.713.
For the big gainers, one had to look beyond the top-ten. Monero surged double-digits after ICO advisory firm Satis forecast ADA to have the fastest growing market cap over the next ten years. Monero rose 10.4% to $109.
WaltonChain, an IOT-focused blockchain, surged by as much as 30% after being picked up by Bithumb. At the time of writing, the cryptocurrency was up 13.5% at $4.80.
The combined cryptocurrency market cap was $226 billion on Friday, having recovered $5 billion from Thursday’s low. Trading volumes amounted to $12.8 billion over a 24-hour period, according to the latest data provided by CoinMarketCap.
Digital assets remain in a holding pattern as the debate over regulation, adoption and scalability intensify. On the adoption side, Yahoo Finance has opened the door to trading with bitcoin, Ethereum and Litecoin – a move that makes cryptocurrencies more accessible to laypeople. The regulatory debate in Europe is also heating up with ministers from 28 EU states reportedly setting a meeting for early September to navigate cryptocurrency policy.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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