fbpx
Money

Is Bitcoin Building Support Above $6,000?

Has Bitcoin been building support above $6,000?

Since declining sharply on Sunday, the digital currency has fluctuated largely between $6,600 and $6,900, according to the CoinDesk Bitcoin Price Index (BPI).

Over the last few hours, the cryptocurrency has moved slightly below that range, falling to as little as $6,455.92 by 19:15 UTC (3:15 p.m. EST), additional BPI figures show.

At the time of report, the digital currency had recovered slightly, trading at $6,555.70.

When asked whether Bitcoin was building support above $6,000, analysts seemed noncommittal.

“Looking at history we don’t really see any reason for major support between $6,600 and $6,000,” said David Johnson, CEO of cryptocurrency tasking platform Latium.

“Of course you have the psychological $6,000 level, but I don’t feel that will be enough to stop downward pressure,” he added.

Bitcoin’s ‘Liquidity Vacuum’

As Bitcoin trades within a relatively tight range, the cryptocurrency has been suffering lackluster trading activity.

Over the last week, 24-hour trading volume has repeatedly fallen short of $5 billion, CoinMarketCap figures show.

“Bitcoin is in a liquidity vacuum at the moment,” noted Mati Greenspan, senior market analyst for social trading platform eToro.

“This is what caused the exaggerated break below the $7100 support,” he added.

Because the Bitcoin markets are struggling with low trading volume, the digital currency is more vulnerable to significant price swings caused by large market participants or “whales” making sizable trades.

“With daily volumes below $5 billion the market could potentially be swayed by a very large player,” said Greenspan.

“However, any such player would be risking a lot as the CFTC is now investigating price manipulation in Bitcoin.”

Sentiment’s Key Role

Analysts emphasized that going forward, a change in sentiment could be the key to Bitcoin breaking out of its current trading range.

While traders are sitting on the sidelines, they should be on the lookout for such a change, emphasized Nate Flanders, CEO of Delaware-based Mandala Exchange.

Greenspan provided similar input, emphasizing that if sentiment becomes more positive, it won’t “take much effort to get back to the highs.”

This story originally appeared in Forbes, Image courtesy of Shutterstock.

Join The Discussion

Six Dead And Dozens Hurt In Nightclub Stampede In Italy
Six Dead And Dozens Hurt In Nightclub Stampede In Italy [Video]
Paris On Lockdown Ahead Of Planned Protests
Paris On Lockdown Ahead Of Planned Protests [Video]
Luxembourg To Become First Country To Make Public Transport Free
Luxembourg To Become First Country To Make Public Transport Free
US Mourns George HW Bush As Trump Gives Cold Shoulder To Clintons
US Mourns George HW Bush As Trump Gives Cold Shoulder To Clintons [Video]
Worldwide Adoption Keeps Growing, 1,500 Restaurants In Denmark Accept Bitcoin
Worldwide Adoption Keeps Growing, 1,500 Restaurants In Denmark Accept Bitcoin
Half The Crypto Market Eliminated In Less Than A Mont
Half The Crypto Market Eliminated In Less Than A Mont
Singapore Residents Targeted In Crypto Scams, $78,000 Lost
Singapore Residents Targeted In Crypto Scams, $78,000 Lost
Brazilian Mining Company Under Investigation, Says It Can’t Pay Investors
Brazilian Mining Company Under Investigation, Says It Can’t Pay Investors
Visual Trends To Be Aware Of In 2019
Visual Trends To Be Aware Of In 2019 [Infographic]
How To Get Sponsored Posts For Your Blog
How To Get Sponsored Posts For Your Blog
The Advantages YouTube Ads Have Over Facebook Ads
The Advantages YouTube Ads Have Over Facebook Ads [Video]
7 Tools Will Help You Kick Butt In 2019
7 Tools Will Help You Kick Butt In 2019 [Video]
Instagram's Testing Side-Scrolling Feed View, Similar To Stories
Instagram’s Testing Side-Scrolling Feed View, Similar To Stories
The 10 Best Instagram Tools For 2019
The 10 Best Instagram Tools For 2019
Pinterest's Recommendation Algorithms Are Improving
Pinterest’s Recommendation Algorithms Are Improving
YouTube Launches YouTube Stories, Prominent Creators Only
YouTube Launches YouTube Stories, Prominent Creators Only [Video]
Wish You Were Smarter
Wish You Were Smarter? These 4 Brain Hacks Can Help You Get There
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
Your Environment May Affect Your Eyes More Than You Realize
Your Environment May Affect Your Eyes More Than You Realize
Why Hotels Want You To Stop Instagramming Your Vacation
Why Hotels Want You To Stop Instagramming Your Vacation
Six Dead And Dozens Hurt In Nightclub Stampede In Italy
Six Dead And Dozens Hurt In Nightclub Stampede In Italy [Video]
Paris On Lockdown Ahead Of Planned Protests
Paris On Lockdown Ahead Of Planned Protests [Video]
The Advantages YouTube Ads Have Over Facebook Ads
The Advantages YouTube Ads Have Over Facebook Ads [Video]
7 Tools Will Help You Kick Butt In 2019
7 Tools Will Help You Kick Butt In 2019 [Video]