Bitcoin Set To Close August Below $10,000 - Forex News by FX Leaders
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Bitcoin Set To Close August Below $10,000

Posted Friday, August 30, 2019 by
Shain Vernier • 1 min read

To say the very least, August has been filled with highs and lows for Bitcoin (BTC). With values peaking above $12,000 during the early going, many traders felt that a return to $20,000 was imminent. Over the past four weeks, these sentiments have been given a reality check with BTC poised to close the month under $10,000.

Going into the fall season, the cryptosphere is eagerly awaiting any fundamental market driver capable of sending values higher. There are two such news items that can accomplish this feat: successful launch of Facebook’s Libra or SEC approval of the first Bitcoin ETF. If one or both of these items come to fruition by year’s end, $20,000 BTC may become a reality.

Bitcoin Closes August On The Bear

The one-month performance numbers for Bitcoin aren’t horrible, but crypto enthusiasts expected more to wrap up the summer. Prices fell by roughly $425 per BTC on cash markets, a loss of 4.25%. At this point, the 5000-pound elephant in the room is once again the $10,000 level.

August Bitcoin Futures (BTC), Daily Chart
August Bitcoin Futures (BTC), Daily Chart

Going into September’s trade, BTC is going to be all about big-round-numbers. Really, anything can happen; we can see a run at 12500 or a sell-off to 7500. If Bitcoin closes monthly trade beneath 10,000 (it sits just above 9500 at press time), then a test of 7500 will become much more probable.

Overview: Typically, the lack of any news is a good thing for cryptocurrencies. This certainly hasn’t been the case for Bitcoin over the past few weeks, as values have slid consistently. A negative close for August will be the third time this year BTC has posted a losing month. For the time being, it appears that traders are waiting for that blockbuster crypto-headline before venturing further into Bitcoin.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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