Bitcoin’s price has definitely started the week with a nice dose of volatility. The Asian markets kicked off the trade week with a 4% selloff, which later brought down bitcoin’s price from $8050 to $7700.
The European markets received the torch next followed by the New York trading session. The bitcoin bounce back was complete by the end of the day. The price snowballed from $7.7K up to $8.3K which is almost a 3.5% daily gain.
Altcoins are also slowly recovering thanks the bitcoin bounce back with Ethereum and XRP showing gains of 6% and 9% respectively.
The bitcoin bounce back will reflect on other markets as well
Traditional markets are moving higher while and commodities are moving lower and many experts are now unsure how the rest of the week will look for cryptocurrencies.
If look at Bitcoin’s performance for the last week, we’ll notice that the close was noticeably bearish. This was the first time in which bitcoin broke and close below the 20-week moving average (WMA) since breaking back in March.
Opinions differ when it comes to the real market sentiment. Bears will most likely see the 20 WMA as lost while bulls will see the move back into support as a “buy the dip” opportunity. Volatility is to be expected for sure.
While the bitcoin bounce back is a very real possibility, the market is still very much in a state of uncertainty. There is a huge buying interest waiting down the $7K barrier. Many bulls are patiently waiting for the dip opportunity which might in fact, not come.
The halving reward is getting closer by the day and miners are starting to sweat as the higher cost of production will most likely result in lower realizable marginal value. The next few weeks will probably stabilize the market around the price in which most experts expect cryptocurrencies to enter 2020.
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