Bitcoin Price Pullback a Healthy Correction

The rout in the cryptocurrency markets is just what is needed for a run up in prices later in the month.

Bitcoin is back below the US$7,000 levels, and its performance has weighed on the other cryptos.

According to CoinMarketCap data, bitcoin prices had dropped 12.76% over the 24-hour period to US$6,431.92.

Ethereum slumped 19.67% to US$228.10, XRP slipped 12.76% to 28.81 US cents, bitcoin cash fell 19.75% to US$504.41 and EOS shed 22.16% to US$5.06 at press time.

Two analysts CryptoNewsAsia spoke to says there is a need for the strong pullback in order for prices to correct. Their analysis is based on technical readings.

On comments from investors that the price dump was “really fast”, one analyst, who suggested adding to bitcoin when prices fell below US$7,000, says, “the faster, the better”.

“Because the drop concluded quickly, I’m still optimistic for the next two weeks,” he says, adding that the bitcoin price target for late September at US$8,500 still holds.

However, he says there could be at least another correction to the downside in the coming weeks before prices recover.

Another analyst says there is a higher chance of an upward correction as long as bitcoin’s price does not fall below US$6,000.

“There will be some sideways trading before prices recover above the US$7,000 levels, the current price movement is a healthy correction,” he adds.

He noted that the price of ethereum is looking attractive at these levels. “My suggestion is to go long because when bitcoin’s price rises again, the other coins will follow,” he says.

Meanwhile, eToro senior market analyst Matti Greenspan says in a Sept 6 report maintains that US dollar strength is the main factor weighing on the crypto markets.

He noted that investors will look to the greenback, for decades the global reserve currency, as a more stable store of value as long as it continues to strengthen and bitcoin is perceived to be in a “bear market”.

Posted on Cryptonewsasia.io

Originally published at learn.eurekapro.com on September 6, 2018.