Bitcoin managed to end the week above $7,000 with Ethereum managing to stay above $405. This represents a red weekly close, but a good opening for this week.
Let’s take a look at the volume, currently Bitcoin’s volume over the past 1 week has been falling, we must also consider that both CME/CBOE are settling their Bitcoin Futures. Every time, there is a settlement date nearing Bitcoin always tests the lower $6000’s. It is in the Nouvive’s Chief Trader’s opinion, that Bitcoin will fall into the lower $6000’s, especially considering the latest COT or Commitment of Traders data released by CBOE/CME.
The data illustrates that those who were previously in long positions, closed those positions. Moreover, there were shorts that were covered when Bitcoin hit the middle $8000 position, meaning $3,000,000 USD worth of Shorts closed.
The Asian close of Bitcoin saw, the price of Bitcoin and Ether have started to drop once again, testing $7,100 and $410. If the volume fails to recover in the next 12 hours, Bitcoin and Ether will likely breach the $7,000 and $400 levels in a similar way as they did on August 5.
As Nouvive previously stated while the cryptocurrency sector has seen some of the most positive developments and news pertaining to the adoption of major digital assets, as seen in the focus of the New York Stock Exchange (NYSE), Starbucks, and Microsoft to improve the usability of crypto, the market itself has been performing poorly.
It can be seen that despite the positive developments, a large sell-off is occurring in the over-the-counter (OTC) market, which take some time for the public cryptocurrency exchange market to reflect.
Moreover, the past 24 hours has shown that tokens including Digibyte, Aelf, Polymath, and 0x have rebounded, pushing the valuation of the crypto market to $258 billion.
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