On July 17, 2019 Bitcoin price has briefly touched 9000 USD, once more confirming that the price has broken 10 000 USD support. However, while short-term the price of the world’s largest cryptocurrency is likely to continue to decrease, it is possible that the current downtrend is merely a correction. In fact, such corrections can be an indication of a healthy market and are necessary even during the long-term bull runs. At the time of publishing, the price fluctuates between 9000 and 10 000 USD.
Cooling down the enthusiasm
The bull run that started all the way back in March and swiftly accelerated once the price broke 10 000 USD seems to have ended. Of course, that doesn’t mean that the price action we are seeing now is set to continue, but it is likely that it has already triggered FOMO and made the mainstream media less interested in frequent updates on BTC’s price.
From the technical analysis point of view, several scenarios are possible. Long term, this correction could lead to Bitcoin reaching new this year’s lows before eventually entering the seemingly inevitable post-halvening bull phase. However, there is also another scenario that is just as likely (if not more likely) to happen – this is just a small retrace on the way to the new Bitcoin ATH. This situation is plausible because BTC’s price was acting very similarly in the first half of 2017. Here is a comparison:
2017 saw Bitcoin reach new ATH; it is entirely possible that the history will repeat itself in 2019.
Not all the metrics are grim
Despite the price downtrend, BTC daily volume continues to increase at a steady pace. Compared to the beginning of May, this value has more than doubled, rising from 1.6 Billion USD to nearly 3.23 Billion USD. The decrease of BTC price seems to have had no effect on the daily volume of the oldest cryptocurrency: