Bitcoin Slumps after Surging to New High as Sellers Strike
- Bitcoin hit a record high of just under $4,500 but then fell by 10% as sellers took control of the market.
- Cryptocurrency market covered in a sea of red with gainers scarce.
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Bitcoin (BTC) Corrects Lower After Asian Traders Send Price to a Record High
Volatility returned to the digital currency space with the price of BTC jumping to a record high of $4,430 before falling back to trade at a low of $3,940, all in the space of eight hours. And worryingly for Bitcoin holders, the price could continue to correct lower with the 100-day ema, currently at $3,906 the first target, ahead of the $3822. A report over the weekend by Goldman Sach’s influential Bitcoin technical analyst Sheba Jafari pointed to the token making a potential high of $4,827 before targeting a correction all the way down to $2,221.
It will now be interesting to watch price action in Asian hours where the majority of the heavy buying has been seen in the last few weeks. The two ‘gaps’ on the daily chart show where US trading finished on the Friday and where UK trading opened on the Monday. The two latest gaps both showed markets opening around 10% on Monday.
Chart: Bitcoin (BTC) Price: Daily/1 Hour Timeframes– August 15, 2017
Chart by IG
The slump in Bitcoin was mirrored in a range of other digital currencies with only a handful of altcoins trading in positive territory. The slump knocked off around $7 billion of the market capitalization – currently just under $135 billion – although the market is still $17 billion higher than one-week ago.
Market Moves/Top 7 Capitalizations – August 15, 2017
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--- Written by Nick Cawley, Analyst.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.