The rally in Bitcoin prices from the previous days fell slightly on Thursday. The prices of many cryptocurrencies also fell significantly, dropping the total market capitalization by almost $ 3 billion.
Bitcoin slips below $ 7,000
When Bitcoin surpassed $ 7,000, many experts identified $ 7,100 as a likely psychological barrier to the best cryptocurrency Any significant hike would mean that BTC maintains a price level higher than that considered due to of the bearish nature of the daily relative and hourly stochastic resistance index (RSI).
The emerging consensus at the moment is that BTC could be in a further retreat that could see its price drop between $ 6,500 and $ 6,700. With the current mine price estimated at $ 6,000, the possibility that the price of BTC falls below this level is at most remote. Many analysts have long stated that a fall in BTC prices below extraction costs is only possible as a result of extreme price manipulation.
At the time of printing, Bitcoin is down nearly 2.5% as it struggles to keep $ 6,900. If the support level is not maintained, BTC will most likely test the price region of $ 6,000.
The cryptocurrency market reduces marginally
Bitcoin is not the only decreasing crypt on the market the coins are in red according to their price movements of 24 hours. Ethereum, the second-tier virtual currency is down more than five percent to go below $ 280. The IOTA is the biggest loser in the top ten coins, dropping by around 14% in the last 24 hours.
Out of the top ten, TRX was not able to continue the positive price run after the latest announcements from TRON CEO Justin Sun. TRX is down 11 percent in last 24 hours. The most significant positive price movement in the first 100 is Dogecoin, with a 21 percent increase.
Strengthening EU regulations and expiring futures contracts for the BTC
Thursday's price crisis comes firmly on the announcement by the EU to wait to issue stricter cryptocurrency rules . Bloomberg reports that the finance ministers of the EU member states will meet in the first week of September to discuss the way forward for virtual currency regulations in the region.
In addition, the CME BTC futures contracts are set to expire on Friday. The period that precedes past maturities has always seen an increase in the price volatility of BTC. However, trading on BTC futures has no direct impact on the price of the asset since the trade is settled in cash – there is no movement of the underlying.
Do you think Bitcoin will quickly recover from the blip and resume its rally price? Let us know your thoughts in the comments section below.
Image courtesy of Coinmarketcap.