Nonetheless, some analysts view the decline as a retrace back to a consolidation price of $6,000 or below, which the digital currency breached on June 24.
“In the short terms, technical analysis is still on the bears’ side,” said analysts at FXPro, a London-based foreign exchange broker. “The benchmark currency [bitcoin]doesn’t have important levels of consolidation near current trading marks. It means that after a short pause the bitcoin could slide down to the nearest consolidation level close to $6,200 mark, and even lower to $5,800.”
After reaching a high of $20,000 last December, the price of Bitcoin has fallen unceremoniously. The rally past the $8,000 mark came as a result of a spate of news regarding interest from investment giant BlackRock, as well as the Bitcoin ETF from VanEck and SolidX.
The latest declines were also spurred by the SEC rejecting plans by Winklevoss Capital Management founders Cameron and Tyler Winklevoss to launch the Winklevoss Bitcoin Trust. The SEC rejected their application for the last year, but it was resubmitted in June, which included a proposed rule change. According to a release by the SEC, the agency said it did not agree with the Winklevoss’ premise that cryptocurrency markets are “uniquely resistant to manipulation.”
timeline of all pending #bitcoin ETFs compiled by @CumberlandSays pic.twitter.com/jg2tlWdDA8
— Bobby Cho (@robertjcho) August 8, 2018
“I do remain longer term bullish,” said Bill Baruch, president and founder at Blue Line Research. “Now I believe the SEC has until the end of September to confirm or deny moving forward with a bitcoin ETF. All things considered, you’re going to see something positive come from this.”
For more information on the cryptocurrency market, visit the Bitcoin category.