Bit-comment: tug-of-war with Bitcoin

Bulls and bears are playing tug-of-war with Bitcoin. BTC lost more than 3% over the past 24h and is trading just above $7,650. Nevertheless, this is far from a 30% correction, which scared market participants. Under this scenario, Bitcoin can roll back to $6,300. On the one hand, Bitcoin gets support on the dips to $7,000, but at the same time, the positive attitude also disappeared.

Now the expectations are growing that the new digital currencies growth cycle is in its initial stage, which means that there are many more spikes and corrections ahead. Crypto optimists see this as an opportunity to purchase coins at reasonable prices, until they become mainstream again, as in 2017.

Compared with the beginning of last week, trading volumes declined by 16% to $17 billion, which may also be evidence of the holiday season, when there is a quieter trend in all markets as a whole. Nevertheless, cryptocurrencies are under the supervision of investors all the time, and in the case of large-scale price dynamics, this will immediately take a large number of market participants out of hibernation.

The FxPro Analyst Team