Bitcoin (BTC) faces short-term consolidation after the recent surge
After reaching its local high of $48,000 on 14th August, Bitcoin (BTC) is falling again. Investors are losing interest due to seasonal effects; however, most analysts are sure that another spike in Bitcoin’s price is right around the corner.
BTC’s slight downfall is reportedly related to institutional investments going down by $22 million (~£16 million). Low level of investor’s involvement is said to be connected to the seasonal effects witnessed in other asset classes as well.
Interest in BTC continues to grow
According to Fidelity, a financial services corporation, 90% of their clients are showing interest in purchasing the leading cryptocurrency. Tom Jessop, the head of the crypto arm of the firm, stated that their interest accelerated due to low interest rates, economic stimulus packages, as well as low yield of investment vehicles, traditionally viewed as alternative. He added that the company was created to build the long-term financial infrastructure necessary for investors to access the digital asset market directly.
Trading veteran Tone Vays says that in the short term the price will continue to grow. However, as soon as BTC prints a new all-time high above $72,000 in coming weeks, we should expect a big sell-off.
Reports on Bitcoin’s price
Bitcoin’s price is trying to reach EMA55 (Exponential Moving Average), which is currently moving toward $46,000. Hopefully, buyers will break above two resistance lines. BTC is more likely to continue its decline to the 50% Fibonacci retracement level at $42,447.
Since Ethereum (ETH), Cardano (ADA), Ripple (XRP) gained a lot of traction last week, Bitcoin Dominance fell to 44%.
According to experts, Bitcoin will have to face two more resistance lines within the foreseeable future. Both $48,000 and $50,000 resistances will make its path more difficult. Nevertheless, bulls are expected to pull the cryptocurrency through.
Bitcoin price is pulling back after gaining over 63% since the 20th July low. Institutional interest in the leading cryptocurrency has likely fallen due to the seasonal effects.
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