The cryptocurrency markets saw a mixed start to the weekend on Saturday, with some making gains, but as the day progressed most major cryptos, including Bitcoin turned positive.
Following on from a disappointing Friday which saw the cryptocurrency markets lower, volume levels picked up and some cryptocurrencies turned from red to green. Volume levels were 30% lower on Friday as investors chose to cash in on gains made earlier in the week, or stay away from the crypto exchanges altogether.
Bitcoin Price Analysis
Bitcoin (BTC) rallied from an intraday low of $7925, to close Friday just above the key $8000 level. The digital currency hit a one month low, falling to its lowest level since mid April as the bears dominated lacklustre end of week trading. Saturday saw an increased volume of trading and gains for the digital currency. At time of writing, Bitcoin is on the rise, having just broken the $8200 mark and is up 1.02%, valuing the crypto coin at $8200.85.
However, one look at the chart suggests that we may well be seeing a dead cat bounce and the Bitcoin rally is short lived. Bitcoin has been struggling to break close to the $9000 barrier for a while and despite today’s uptick, the overall trend is in a downward direction.
At the moment, the crypto market is more likely to be pushing new lows rather than breaking key $8400 levels, but trades are currently on diminishing volumes. Should volume levels increase, there is a greater chance of an uptick in the fortunes of Bitcoin.
The Bitcoin price action is currently forming a Falling Wedge which, should it break in the up direction, would mean Bitcoin forming a new price target beyond $9000. The key price mark that needs to be broken for that to happen is $8400.
In what started as a mixed day for the cryptocurrencies, as the day progressed it was not just Bitcoin that made gains. Ethereum turned a 1.27% intraday loss into a 4.08% gain and is currently trading at $709.21. Ripple (XRP) is 1.83% higher at time of writing, trading at $0.68006. Litecoin is up 3.62%, trading at $137.39 and Bitcoin Cash is up 2.43%, valuing the digital coin at $1207.83.
In general crypto news, South Africa is to get its first crypto ATM. The country’s first cryptocurrency ATM will be installed at Northwold Spar by the end of the week. Elsewhere, Norway’s central bank, Norges Bank, according to the release of its white paper, is considering developing its own digital currency.