Bitcoin drops to $6,610 after weekly high of $7,509

Bitcoin dropped to $6,610.47 as of writing, down 2.42%, or $164.28, compared to its Friday opening price of $6,774.75.

The cryptocurrency was trading as high as $6,850.35 on Friday before dropping to as low $6,513.10.

Bitcoin risks dropping to $6,000 in next 24 hours

According to Coindesk’s Omkar Godbole, Bitcoin “risks falling to $6,000 in the next 24 hours, but there is limited room for a drop below that level, the technical studies indicate.”

Godbole pointed that Bitcoin hasn’t managed to stay above a key resistance level of $7,240, adding that Bitcoin’s retreat from the weekly high of $7,509 to $6,600 “also signals continuation of the bearish “lower” highs pattern”.

Recent cryptocurrency developments:
  • The Reserve Bank of India implemented a ban on financial institutions from dealing in cryptocurrencies, citing the high risks involved.

According to a CoinTelegraph report, Tim Draper said India is making a mistake by excluding cryptocurrencies. Draper believes that it will only force trading to move to other more crypto-friendly countries.

  • London-based macroeconomic research firm Capital Economics warned investors that Bitcoin will underperform stocks and bonds in the future because the digital currency is “essentially worthless”.

“Bitcoin’s correlation with equity prices has strengthened recently, but we think that this will be just temporary. We still think that bitcoin is essentially worthless, meaning that it is likely to fare much worse than other assets in the coming months,” Capital Economics was quoted as saying by CNBC.

 

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