Bitcoin reigns supreme as the most widely popular cryptocurrency in the world. Many are attracted to Bitcoin because it’s decentralized, digital and has an extensive network spanning established monetary systems, banks, and financial administrators. Trading, buying, and paying with Bitcoin is slowly growing; however, a recent slump has made traders worried.
Over the past weeks, the price of Bitcoin has plummeted from a high of $13,000 to $10,600, 18% more against the US dollar. The popular cryptocurrency is at its lowest lately; it even went as far as $9,000. Despite showing an active recovery in the previous week, Bitcoin continues to struggle past $11,000, a resistance level for the cryptocurrency this month.
Prominent investor and Galaxy Digital CEO Michael Novogratz announced that Bitcoin might be consolidating before commencing a higher move.
Novogratz said that if Bitcoin goes down to $100, then it’s game over for the cryptocurrency. At this level, it won’t be able to establish itself as a valuable currency. He further advised people to stop wasting their time wondering what will happen next and to simply enjoy their summer.
Technical analyst and trader Josh Rager mentioned, from his technical perspective, that Bitcoin has not surpassed its resistance level of $10,850 which should be met to establish the short term trend of the cryptocurrency.
Rager described Bitcoin as “decent” and bullish despite not being able to reclaim its resistance level and barely moving over $11,000 a few days ago.
While the price of Bitcoin slightly slowed since the start of the month, precious metals such as gold and silver are headed for their best weeks in the past years.
Brian Stutland, an executive of Equity Armor Investments, mentioned that Bitcoin and other cryptocurrency assets could attract investors during the medium-term consider that the interest rates in the US, Europe, and other economies fall in the next term.
Huge factors are expected to contribute to the possible recovery of Bitcoin as well as other cryptocurrencies in the next few months; however, it may not be possible in the near future because of bearish trends in the market.
Stutland further said that the interest beyond flat currencies is real provided that interest rates in the United States remain below 2% and if the price remains negative in Europe. If the rates stay this way, money may be invested in metals. He added that silver is a sell whereas gold is a buy, so it’s definitely a good time to do so.