Bitcoin Price Struggling at $10K as Analysts Warn of 2018-Style Dump
Bitcoin (BTC) price was testing support at $10,000 Aug. 22 as the largest cryptocurrency fluctuated between four and five figures.
Difficulty must touch floor before Bitcoin price moons
Data from Coin360 showed #BTC /USD crossing the $10,000 mark multiple times over the past 24 hours.
Currently, the pair is hovering around the $10K mark, having traded in a corridor between $9,800 and $10,250 overnight.
Attempting to decide whether $10,000 will now form support or resistance, the latest moves follow on from a bearish trend, which saw BTC/USD drop to current levels from closer to $11,000.
Rejecting that barrier, the mood turned jittery among traders. As reported, regular commentator Josh Rager had eyed a daily close above $10,200 as being necessary to preserve upside chances, something which Bitcoin ultimately failed to achieve.
Another popular social media-based analyst, The Crypto Panda, was more pessimistic still, warning on Wednesday Bitcoin faced a breakdown similar to November 2018. At that time, a sudden shift saw BTC/USD hit its local lows of just $3,100. “After each ATH #bitcoin price drops until a lot of miners aren't profitable. Miners switch off hardware (capitulate), hashrate drops, and difficulty adjusts downwards until miners become profitable again and difficulty rises,” the well-known PlanB added.
He noted mining difficulty — an indicator estimating the amount of computing power required to validate Bitcoin transactions — must bottom out before price highs appear. That pattern was evident following last year’s price drop. “Difficulty bottom (100%) starts a new bull market,” he concluded.
In an indication of the behavior still impacting Bitcoin markets, weekly gains remain at almost 5% for traders, while monthly losses conversely circle around 1%. Three-month performance nonetheless remains extremely strong at 30% gains.
Altcoins seize rare chance to consolidate
Thursday marked an interesting day on #altcoin markets, becoming one of the few days on which the majority of tokens were less volatile than Bitcoin.#tattoo#southafrica#uk