Bitcoin Plunges Below $7,000 Mark

Aug 06, 2018 at 22:59

The biggest cryptocurrency shed around 6 percent to hover around the $6,000 handle for the first time since July 17.

This happens amid recent market rallies—the latest of which was when it reached a little more than $8,400 last week—that strive to keep the cryptocurrency from further plunging below the $7,000 level.

The latest slump seems to mark a surrender of last month’s gains when the cryptocurrency jumped by nearly a third.

 

“Bitcoin and the cryptocurrency market appear quite vulnerable early in August,” Mike McGlone and Eric Balchunas, Bloomberg Intelligence analysts, said in a Bloomberg report which broke the news of Bitcoin’s Monday dip.

“Supply, demand and price indications remain negative,” they added.

Other giant cryptocurrencies such as Ethereum, Litecoin and Ripple also declined on Monday.

After the prior trading session, Mate Cser, a financial analyst, had forecast Bitcoin to test support level at $5,850 when it went close to establishing “a failed break-out pattern.”

“Traders shouldn’t enter positions here despite the short-term oversold readings, with the weakness of altcoins also being a negative sign,” Cser said in Hacked.com.

The trader added primary support now lingers at $7,000 and even lower at $6750, $6500, and $6275, while resistance ranges between $7250 and $7350 and at $7650 and $7800.