Bitcoin leads downside correction, what’s next?

  • by Ofeed Team
  • July 2, 2019, 14:23 AM
  • 156 Views
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The Bitcoin has declined further on Tuesday, leading a reversal of some of this year's stellar rally and adding to doubts that the bubble has been burst.

The largest encrypted currency by market capitalization fell by more than 15 percent from Friday, while slipped by more than 8 percent today to trade at $10,201 dollars, as of 8:58 GMT. However, it is still about 200 percent up since the beginning of the year.

The Bitcoin slipped for a fourth straight day, incurring more than 26 percent since hitting this year’s top at $13,880 on BitStamp cryptocurrency exchange on June 26.     

Over the course of June, the bitcoin managed to lock a gain of 25.8 percent, resuming its advance for a fifth month in a row. Yet, the gain was below May’s whopping 62 percent rise.

Not only the Bitcoin that has suffered sharp loses, as both Ethereum, Ripple and Litecoin, as well as other major digital currencies signaled a strong drop.

Ethereum slumped more than 4 percent to trade at $284, Ripples tumbled more than 3 percent to $0.40. The Bitcoin cash sagged 7 percent to $401.

The sudden sell-off in cryptocurrencies came after warnings of the violent collapse and technical data that have shown a strong sign of the buyer's exhaustion.

Nevertheless, the GTI Vera Band indicator showed that Bitcoin is still in an upward trend and may continue to test new high records as it holds above $9,860, which is the minimum range indicating the point of changing direction.

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Some analysts believe that the rally fizzled out after hopes of trade agreement between the United States and China after Trump-Xi meeting over last weekend, as cryptocurrencies have been largely treated as safe haven assets.

Gold, the most famous classic refuge asset, slumped from a top of $1438.91, the highest in six years, to $1383.76 on Monday on improvement investors’ sentiment.

The GTI Volatility Explosion Relatively Adjusted theory (VERA) Bands indicator is used by traders as a guidance to future price movements based on trend data. The narrowing of the upper and lower bands of the GTI VERA Bands Indicator suggests a potential breakout. If an asset holds above the lower band limit, this means maintaining the current trend (upside or downside).

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