The Bitcoin price has been trading around $8,000 for the better part of the last week. However, the price recently fell below the $8,000 line to trade in the high $7,000s. Since then, however, the Bitcoin price has returned to levels above $8,000 – showcasing notable resistance against lower price levels.
Bitcoin price falls below $8,000 before recovering
Overall, the markets have seen mixed performance for the better part of the day. Although Bitcoin is down somewhat in intraday trading, it is currently trading at $8,032. This comes after the crypto first fell to around $7,950 earlier today, according to COIN360.
This sudden fall in the price of Bitcoin was, at first, a source of concern among some who worried it could signal a greater fall in crypto prices. After all, the $8,000 price level has become a notable price gauge during the last week.
Ever since the price of Bitcoin fell from around $10,000 to around $8,000, the premier cryptocurrency has more or less consistently stayed above $8,000. Therefore, it was not inconceivable that a further drop could be a larger signal for the overall crypto market.
Nevertheless, it now seems clear that this is not the case. Since Bitcoin recovered to levels above $8,000, it appears clear that the premier crypto has a solid support around this level. With that said, however, some will no doubt be wary over the ongoing calm in the crypto markets.
What does the future hold for the crypto market?
Any notable price movement could signal a larger price shift, and the last weeks have seen Bitcoin – and the wider crypto market – trade mostly sideways. Although it is a gross oversimplification to say that the performance of Bitcoin dictates the larger market sentiment, it is nonetheless not wholly incorrect.
This is why it becomes of paramount importance to keep an eye on the performance of Bitcoin. Rapid price swings, such as the recent dip below $8,000, could signal the start of larger market movement.
Moreover, it is currently unclear how the crypto market will continue to develop. While some have speculated that the market is merely consolidating before another price increase, others warn that it could also fall further.
For example, a recent price prediction said that Bitcoin will likely reach a whopping $100,000 price by 2023. On the other hand, it could also first fall to a price point of around $5,000. Put simply, it appears clear that no one is really sure when the crypto market will stop trading sideways.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.