Bitcoin has been experiencing an unpredicted surge in its price. This surge, on the 10th September, saw the price rise from just under $6,200 to then jump to $6,450 however, the rest of market has struggled to get back on its feet and showing slow movement.
The cryptocurrency saw its lowest point on 2018 on 15th August when it’s price was at $191 billion. Over the past day, the markets value dropped by $4 billion ($200 billion to $196 billion) and is now heading towards a possible slump.
Bitcoin has almost stayed stable as it stays in the $6,300 mark while the majority of the small market cap digital currencies fall in value against the US dollar and Bitcoin.
The digital currency of Ethereum, ETH and EOS have recorded up to 6% gains. Some tokens like Augur and WanChain have seen a relatively good increase in not only price but volume since the market has kicked back since 8th September.
The quick increase in volume and price for Ethereum and Bitcoin on 9th September suggests that the market is demonstrating oversold conditions. This could lead to suitable corrective rally in the short term.
It is feasible for Bitcoin to breakout of its $6,400 mark and possibly get back its momentum in the mid-$6,000 area. However, many technical analysts think a trend reversal isn’t likely for the near future.
One of the technical analysts wrote this:
“According to Murphy, one of the most powerful tools of spotting a market reversal is the 3 line fan. All three lines must acta support turned resistance. Not a big diagonals fans, but i’ve used this idea with great success in the past. Don’t expect a reversal soon IMO.”
Bide your time
Many traders are biding their time to see what is to happen. Since it's unlikely that Bitcoin is going to make a big movement in the short term like it did throughout August, all eyes are glued to the market.