The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.[1]
The total market capitalization of cryptocurrencies has dived to about $266 billion[2] from above $300 billion on July 27. Such price swings are a common phenomenon on the cryptocurrency market. However, investment bank UBS believes[3] that instability is a major hindrance to Bitcoin being considered as money.
Robert Sluymer, head of technical strategy at Fundstrat said to CNBC[4] that if Bitcoin fails to hold the $7,400 mark, a deeper correction to the $6,000 range is possible.
Due to the highly volatile nature of cryptocurrencies, using leverage can be a dangerous decision. An unidentified futures trader on the OKEx crypto exchange has recently found this out[5] the hard way, when his long position netted a massive loss, which will now have to be partially compensated by their counterparties. While without leverage this is a normal trading loss, with leverage this can become unmanageable and result in bankruptcies.
Therefore, we always advise our readers to take smaller positions when buying closer to the lows, in anticipation of a change in trend, so that a small loss doesn’t dent the portfolio. Larger positions can be initiated when the crypto markets are in a bull phase.
Let’s look at the charts to identify whether the path of least resistance is up or down.
BTC/USD
Bitcoin[6] dipped to an intraday low of $7,288.97 today, triggering
