Last week was a turning point for the price of Bitcoin, as it dropped sharply by almost $100. And we can’t expect a rapid recovery of the price soon.
Sharp bitcoin sales were caused by a security breach at Bitfinex exchange on August 2. A huge amount of bitcoins was stolen. Fear of losing money made users sell their bitcoins quickly, and that caused a collapse of the price to $517. Then, over the next three days, the price moved up to $575.
BTC/USD exchange rates for last 7 days:
Today we can’t expect a fast recovery of Bitcoin exchange rates. Before falling, Bitcoin was in a sideways trend for almost a month and buyers expressed weak interest in placing new orders. This indicates that Bitcoin is overbought. Then the collapse of Bitfinex gave impetus to sales.
The small technical rebound of prices to $575 can be called temporary. At the moment, a price of $600 can be regarded as a serious resistance. If buyers can not overcome this level a new round of sales might begin.
BTC/USD exchange rates for last 30 days:
As you can see on the 30-day chart, BTC has found a new target on the level of $520. The scope of the corridor is now wide enough. The upper limit is $600, the lower limit is $520. With a positive scenario, the price will stay at the current level of $570. On weekends, drastic changes of price are unlikely to happen.
Next week, we expect buyers try to test the resistance level of $600.
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency.