Bitcoin recovered above $60,000 after a sharp drop below $50,000 last week. However, the recovery was short-lived and the price has fallen below $60,000 once again.
However, some analysts state that the downward trend in BTC continues, citing historical trends in August.
At this point, FxPro senior analyst Alex Kuptsikevich said that he expects Bitcoin to decline again in the short term.
Speaking to Coindesk, Kuptsikevich said he expects the Bitcoin price to drop by $5,000 from $58,000, adding that a drop is more likely than a rise.
The analyst said the bearish trend was due to Bitcoin’s failure to sustain gains above $60,000 following a bearish crossover of the 50- and 200-day simple moving averages (SMA).
“Bitcoin is more likely to fall by $5,000 in the short term than rise by the same amount.
“BTC has failed to hold onto gains above $60,000 and is facing a sell-off after struggling to break above the 50- and 200-day MAs last weekend. This suggests sellers are dominant.”
Apart from Alex Kuptsikevich, QCP Capital analysts also think that the selling trend is dominant in Bitcoin. In their analysis yesterday, analysts stated that the selling in BTC will continue until September as the market remains cautious in the near term.
*Not investment advice