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Bitcoin Dips Below $9,000 Before Minor Recovery

June 15, 2020 at 14:19 by Matt Jackson

Bitcoin’s price dropped below $9,000 for the first time in three weeks. Buy orders triggered at resistance and prices have since recovered to $9,100 but the dip led to a fall for all major cryptocurrencies. Ethereum is down more than 5% in the past 24 hours while Ripple, which has been overtaken by Tether as the third largest coin by market capitalization, posted a 3% drop. Total market capitalization has fallen from $270 billion at the start of the day, to $255 billion.

The world’s largest cryptocurrency has made several failed attempts to take the $10,000 mark in the past few weeks. Most recently, it looked like gearing up for another charge at the psychological resistance last week, passing $9,900 on June 11th. Having failed to break and hold the barrier, however, the digital gold’s price sharply fell back to trade at $9,300 by the end of the day. Bitcoin traded in a range between $9,300 and $9,500 at the end of last week and over the weekend, before finally making its move this morning.

Cryptocurrency market volatility has increased in the past few days, with some traders hinting that this will lead to a big move in the coming week. Today’s drop may be a precursor of even bigger price movements in the next few days. $10,000 still remains Bitcoin’s biggest overhead hurdle, while $9,000 clearly remains the support. If this support level fails, further support can be seen at $8,750 and investors will be hoping for a bounce from either of these positions. Some believe that the drop could be a bear trap, however.

For the timebeing, Bitcoin is tracking equities, amid rising fears of a second Coronavirus wave. China has reported a small number of new novel Coronavirus cases over the past few days. All of the new cases have been linked to a single wholesale food market in Beijing, which has been closed. Local police have been deployed to the area. There has also been a spike in cases in the US, following Black Lives Matter protests and counterprotests in the country and around the globe. There is also growing concern over the number of cases in Spain, while Brazil overtook Britain as having the second-highest Coronavirus death count in the world. Despite the spike in deaths in the South American nation, Brazil is looking to ease lockdown measures in order to kickstart their struggling economy.

Meanwhile, JP Morgan has continued its startling turnaround on Bitcoin. The company’s CEO once described Bitcoin as being a “fraud”. However, more recently, the bank has said that cryptocurrencies have “longevity” and are “mostly positive”. Their opinion seems to have changed following Bitcoin’s performance during the Coronaravirus crash. Although the coin dropped to levels below $4,000 in March, when the world’s governments looked at various ways to combat the virus, it quickly bounced back to pre-covid levels. They have also pointed out that the digital currency has continued to trade above its production costs and that while it remains a risky asset, its production costs should be considered a price floor. A report from the bank went on to say that Bitcoin weathered its first storm well.

At 15:15 GMT, Bitcoin (BTC) is trading down 2.05% at $9,219.34 while Ethereum (ETH) is down 4.24% and changing hands at $225.94. Ripple (XRP) now costs $0.187, having shed 2.68% from its price. Bitcoin Cash (BCH) and Bitcoin SV (BSV) are both down, having lost 3.06% and 5.35% to trade at $230.94 and $172.86 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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