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.
You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.
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