The end of July doesn’t look too promising for Bitcoin. After a successful uptrend earlier in the month, prices have fallen once again. Most of the earlier gains have been negated. Analysts are concerned the selling pressure will not relent anytime soon.
Bitcoin’s July was Almost Impressive
Cryptocurrency is a very volatile industry when it comes to coins’ prices. Bitcoin is an excellent example, as its value fluctuates nearly every single day. This past July was very positive for the world’s leading cryptocurrency, up to a certain extent. At one point, the world’s leading cryptocurrency’s price had surged by almost 20% in a week.
Many speculators assumed that was the beginning of a big and long bull run. It seems that will not be the case after all. The Bitcoin price momentum has petered out and the value is falling. During the final day of July, BTC lost just over 5% in value. It is another example of how volatile this industry can be at any given time.
Finding an explanation for this decline is difficult. Some analysts claim it has to do with the SEC rejecting the Winklevoss Bitcoin ETF. Others think it is sheer profit-taking after a brief spell of bullish momentum. Current technical indicators do not favor any upward momentum in the coming days, or even weeks, however, technical indicators only tell a small part of the bigger picture surrounding the cryptocurrency industry.
The Road Ahead for Bitcoin
Moving on from this disappointing end of July can be done in two ways. Either the markets recover despite opposing technical indicators, or the bearish trend continues. Analysts expect the selling pressure will continue to mount for some time to come. With the price falling below critical support levels, a dip to $7,300 or lower is not out of the question.
At the same time, July was a big month for cryptocurrency. It was the first time the negative streak affecting all markets was broken for more than a few consecutive hours. There is still a lot of life left in the cryptocurrency markets despite the current trend. Every currency or asset hinges on Bitcoin to see its own value improve. Until that happens, speculators may continue to liquidate their holdings accordingly.
Other top cryptocurrencies feel the pressure as well. Both Ethereum and Bitcoin Cash suffer from similar value declines. One exception is Ripple’s XRP, which seems to be increasing in value at this crucial time. It is possible that this will bring more positive momentum to all other cryptocurrency markets in the coming weeks. 2018 is far from over, and a lot of things can change in the coming few months.
Will Bitcoin rebound? What do you think caused the end-of-July price slump? Let us know in the comments below!
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Author: JP Buntinx