WMA: Bitcoin price drops after failing to conquer the $10k barrier
Get the weekly summary of cryptocurrency market trends, news, and forecasts!
This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $267 billion.
- Bitcoin failed to go over the $10K level, and it ends the week trading in the red.
- Ethereum decreased by 2.5% over the past week but looking to surge again.
- XRP lost more than 4% and fell below $0.20 again
- Fears of a second wave of COVID-19 infections have shaken the markets on the brink of the weekend.
Crypto Trends 8th – 14th of June 2020: PERFORMANCE & ANALYSIS
Last week seemed like a déjà-vu for Bitcoin, and most of the altcoins as market volatility took the spotlight.
Bitcoin started the week promisingly enough, and by Wednesday, it had reached the much-coveted $10,000 resistance level. Any bullish hope of the popular crypto going over it and staying there was squashed in just a few hours. BTC quickly retreated to its comfort zone, somewhere between $9,000 and $9,500, where it’s still wobbling at the moment.
The drop in value for BTC affected the ensuing altcoins. Similar to past crashes, this one was also correlated to the latest news. When alarming reports of a potential second wave of the Covid-19 pandemic emerged on Thursday, most of the coins at the top of the market cap tier began downtrending.
On the same day, the global equity markets dropped as well, while gold kept its uptrending position.
The prior escalation in BTC price was also fueled by news and reports, but good ones this time. Recent data shows that the U.S. economy gained 2.5 million jobs in May, while the unemployment rate dropped from 14.7% to 13.3%.
At the moment, Bitcoin is trading at $9,426 and eagerly waiting for some good news to push it past the $10,000 mark again.
Elsewhere, it was a bad week for Ethereum as well. ETH was trading at $240 at the start of the week, and industry hopefuls were expecting it to go over the $250 resistance level soon. Unfortunately, Ethereum entered a downward slope, and it is trading in red at the moment, at only $235. The next level of support lies at $225, while the closest resistance is at $245.
Ripple’s XRP is getting accustomed to the 4th position in the market capitalization table behind Tether. On the contrary, it seems to be doing everything in its powers to remain there as it regressed below the $0.20 yet again. At the moment, XRP is trading in red like most of the Top-20 altcoins and available at around $0.192.
What’s in the News?
- BTC mining difficulty dropped by 9% since the beginning of the year
- According to the New York Times, the collapse of the Canadian cryptocurrency trading platform QuadrigaCX was due to a Ponzi scheme.
- The Indian Government is reconsidering banning Bitcoin again, according to this report.
Next Week’s Market Forecast
In the upcoming week, Bitcoin will try to attack the $10,000 resistance level for the 5th week in a row. However, this time, it will have to do it while keeping an eye on new developments in the COVID-19 crisis. The halving’s positive effects have been shy, if not absent, so far, and BTC is looking for a decisive break to confirm the pre-halving optimistic predictions.
The ensuing altcoins still have an umbilical dependency on Bitcoin’s evolution, and Ethereum, XRP, Bitcoin Cash, and Litecoin, among many others, end the week trending in red. They should react positively to a change in BTC’s trajectory next week.