Bitcoin price weekly analysis 2 July: Small steps have seen Bitcoin recover slightly
Bitcoin has had an improved week as the market tries to make a recovery.
- A couple of steps up have seen bitcoin make gains in excess of 5% over the last week.
- Overall, the last week points to positivity.
- Traders are coming back as trading volumes are on the rise.
Bitcoin has made a slight recovery this week, after a couple of weeks of damaging trading. Its price made a modest 5.2% gain over the last week but still has a long way to go before it reaches the $10,000 level we saw a couple of months ago.
Over the last week, BTC traded predominantly within two narrow ranges. Until Friday, it stayed between the $6,100 and $6,200 level most of the time. A small dip on Friday dragged it to around $5,900 before a pair of green candles were lit, driving the price to $6,400 where it stayed until a few hours ago.
Another candle was lit then, taking the price up to around $6,700, before the price dipped slightly to sit just below $6,600.
24-hour trading volumes were flat before the weekend, sitting at around $3.5 billion. They rose a little when the price dipped on Friday and then rose to around $4.8 billion as buyers took advantage of the low price. They dipped to around $4 billion before another short peak of $5.5 billion when the price jumped again a few hours ago.
While cryptocurrency markets are often characterised by their volatility, bitcoin has been a little different. Looking at the last month, it has spent extended periods trading in a relatively narrow range before taking a step – predominantly downwards over recent weeks – and then settling back into a range.
That surge is interesting, particularly in the context of a recent report by Big Four accountancy firm Pricewaterhouse Coopers. It says close to $14 billion has been spent on cryptocurrencies so far this year. That's double what we were seeing last year. Interestingly, of the almost 3,500 ICOs that have taken place, fewer than a third have closed successfully.
So, in that context, the overall lack of confidence in the markets isn't surprising. A 30% success rate in ICOs is a 70% failure rate.
At the moment, the lower support level for bitcoin is around the $6,200 mark. That's a view FXStreet has suggested with the 200-day simple moving average sitting at a little under that.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, ETH, str, LTC, TRX, BCC, ADA, XRP and GAS.
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