The inability to sustainably overcome the $ 8,000 threshold resulted in a drop for Butcoin by $1,400 and this happened within only a few hours. Apparently, some of the players decided to exit Bitcoin, finding that the rally had already exhausted itself. However, of course there were those who entered the market with joy and went out under the funeral march. Now BTC is trading at about $7,300, partially recovering from falling to $6,600 and showing the irony of market volatility.
Analysts say that the decline was caused by a large (several thousand bitcoins) order for sale on Bitstamp. It also became a trigger for the correction of prices for the main altcoins, most of which still lose more than 10% to the levels of the previous day.
On the technical analysis side, Bitcoin ran into resistance near $8,200, which in July last year also stopped the rise of prices. The RSI on the daily charts marks a divergence: the new highs for the last month are not confirmed by the peak values of this indicator and therefore they cannot be taken for granted. Even more alarming. The RSI fell sharply in the range below 70, probably marking the beginning of a longer correction.
The upcoming weekend may determine the further direction of the price dynamics of Bitcoin and the entire cryptocurrency market as a whole. So far there are more signs that the pullback was short-term and the general trend for growth will continue at least until the end of summer.
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