Bitcoin has been hit by yet another wave of negative market coverage. But it still relentlessly continued reaching for all-time high prices on Tuesday. Is a pullback due soon? Read on!
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1- Fundamental Analysis
One of the big news in Bitcoin’s world this week was the big theft affected a separate virtual currency system called Tether.
Tether is a start-up that offers dollar-backed digital tokens. They said hackers stole more than $30 million from its investors.Despite this, Bitcoin hit an all-time high of $8,362.30 on Tuesday, before erasing its gains.
Is that all?
In other news, Bitstamp, one of the oldest cryptocurrency exchanges, has announced it will launch trading of Bitcoin Cash, the crypto that many view as Bitcoin’s rival.
Meanwhile, the Russian minister of communications and mass media said on Monday that the country will not consider the legalization of digital currencies like bitcoin.
On the other hand, in the US, on CNBC’s Global CFO Council, some chief financial officers said bitcoin is ‘real’ but many think it’s in a bubble right now.
This type of outlook would beg for a massive Bitcoin correction in the future.
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2- Bitcoin BTC/USD Technical Analysis
Whether for the hack or the rivalry, from a market sentiment point of view, Bitcoin has proven to have a habit of pulling back every time it hits an all-time high.
Sometimes it pulls back only to the immediate support level at around 23% Fibonacci. Other times, it goes all the way down to the 50%.
Setting up a Fibonacci retracement level to track the most recent uptrend in BTC/USD, we could argue that the price could see a pullback to at least $7747, or the extended support at $7,200.
As the 4th point of the IDDA, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. At the moment, BTCUSD is proven to be incredibly volatile. While this could create amazing buy-limit order opportunities, if you wait too long, you might miss out on yet another all-time high!
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