Bitcoin price weekly analysis 8 August: Price moves down, trading volume stabilises
The price of the most popular cryptocurrency took a big hit over the weekend, shedding a load of value.
- The leading cryptocurrency was valued at US$7,734.00 this time last week and now sits at US$6,965.68.
- Trading volumes took a nosedive but managed to bounce back to similar levels.
- The NYSE's parent company is planning to offer a one-day physical bitcoin futures contract.
Over the past week, bitcoin's value has gradually fallen, depreciating by about one tenth (9.93%), finishing at US$6,965.68 on 7 August 2018.
The coin peaked at US$7,780.44 on Tuesday afternoon last week but sank to US$7,516.99 just a few hours later. From there bitcoin suffered a downward trajectory, albeit a few minor fluctuations pulling it up temporarily.
The big hit was Saturday 4 August, when bitcoin decreased from US$7,478.31 to US$6,984.07 in under 10 hours.
24-hour trading volume was way down from the US$5.28 billion that began the week. Losing around one quarter (25%) – more than US$1.35 billion – of its total volume, bitcoin's trading capacity ended at US$3.92 billion on Monday.
However, over the past 24 hours, volumes rose back up to US$4.68 billion to close out Tuesday's trading.
Despite some feel-good news releases, bitcoin continued to suffer negative price movements this past week.
FX Street analysts suggest that the BTC/USD pair has been within range-bound trading and consolidation mode since 4 August, after a considerable drop over the weekend. The cryptocurrency has failed to regain stability.
Traders rallied early this week, following reports that Goldman Sachs is supposedly considering a plan to offer cryptocurrency custody solutions. These efforts could encourage and speed up institutional adoption.
Hacked says momentum remains weak with the Relative Strength Index (RSI) hovering in the low-to-mid 40s.
Intercontinental Exchange (ICE), which owns the New York Stock Exchange (NYSE), recently unveiled plans to form a new company, Bakkt. Initial use cases include trading and converting bitcoin to fiat currencies. The US-based futures exchange and clearing house will also release a one-day physically delivered bitcoin contract in November. However, this offering remains subject to Commodity Futures Trading Commission (CFTC) approval.
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