What is affecting Bitcoin price today and how will it move in the near future? Get all the updates in this 20 August Bitcoin Price Analysis.
20 August, Crypto Today – Having entered the third week of August, crypto enthusiasts from all over the world feel puzzled. The reason being is the bizarre price action of the leading cryptocurrency – Bitcoin. The cryptocurrency has appeared to be ready for the breakout above $6,650 but the attempt has seemingly failed. What has caused Bitcoin to stay on the bearish side?
Why is Bitcoin price down?
According to a number of online reports, Bitcoin has failed a breakout attempt due to a lack of buying interest. The latter has caused the price of Bitcoin to drop to trade in the range $6,200 – $6,400. As of the time of writing, according to the data on Coinmarketcap, the price of Bitcoin stands at $6,474.66.
Earlier last week, some of the online reports stated that Bart Smith, the head of Digital Assets group at Susquehanna International Group, has noted that “Bitcoin is in show me mode.” The current cryptocurrency market seems to be resistant to various trend changes caused by the good news in the industry.
Mr. Smith has reportedly stated that investors are now seeking for proof that the market has turned bullish before going long. The result of such action is the trend of falling volume for Bitcoin.
It appears that the market is now depending on the SEC’s approval or denial of Bitcoin exchange-traded funds (ETFs). Yet, there are some crypto entrepreneurs that believe it is not sensible to place all hopes in the approval of the ETF for a number of reasons.
US Investors Selling Off Crypto Holdings
In the meantime, the US has seen the introduction of the new Bitcoin Exchange Traded Note (ETN) that came to us from Coinshares subsidiary, namely Tracker One. This option offers US-based investors a regulated way to invest in Bitcoin through the US dealers. This also comes without having to worry about securing coins and registering on various crypto exchanges.
Another key reason for Bitcoin price failure to break above the resistance level is the fact that Bitcoin US investors are selling offer their cryptocurrency holdings in order to pay off capital gain tax. In fact, the first-time investors are now facing the large capital gain taxes from the profit they made back in 2017
20 August Bitcoin Price Analysis
While there is no major price action is expected for Bitcoin today, some of the crypto experts claim that BTC USD might make an attempt to correct the support level test at around $6,350. At that level, we can expect the price of BTC to rise to a potential target of near $7,300.
However, in a less positive scenario, we would see a strong drop all the way through the $6,100 area. This would signal the further continuation of the decline.
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