Bitcoin Rally Halted by Short Traders and Goldman Sachs

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, TRON: Price Analysis, August 03
August 3, 2018
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The final week of July was going well for Bitcoin investors taking long positions for August; however, pressure from the futures market and comments from investment banking giant Goldman Sachs made things difficult for the world’s most valuable cryptocurrency. After dancing around the $8,000 price level for a few days, Bitcoin started losing ground as technical traders started taking profits and short futures contracts were written at the Chicago Mercantile and Board Options Exchanges.

Traders who are hoping for Bitcoin to go long and recover towards the $10,000 mark, which is widely considered to be both a psychological goal and barrier, will have to wait until the pressure from the futures market subsides. Technical traders were feeling quite bearish on August 3 after Bitcoin touched the $7,280 level, well below the 100-day moving average; as a result, opportunistic buyers propelled the digital currency back to $7,400, where many traders are expecting it to stay for a few days.

How Is The Market Affected By Economists

Ever since Bitcoin futures were introduced in late 2017, seasoned traders have noticed that weekend trading has slowed down, and this can be explained by the increased participation of Wall Street players who tend to take weekends off. Speaking of Wall Street, investment banking firm Goldman Sachs also contributed to Bitcoin’s bearish outlook ahead of the first weekend in August.

Goldman Sachs economists have published their semiannual report, and their forecasts for Bitcoin are not the most desirable for long traders. The current outlook from Goldman Sachs, who still has intentions of operating a trading desk focused on cryptocurrencies, is that Bitcoin and its competitors will not return to the stratospheric valuations they enjoyed in late 2017.

The Goldman Sachs report estimates that the cryptocurrency market valuation makes up about 0.3 percent of the gross domestic product on a global level, which means that the considerable amount of media attention it receives may be an exaggeration. Despite this gloomy projection, Goldman Sachs is still moving forward with its Bitcoin trading desk for institutional investors, and there is a chance that its traders may be busy with orders should BTC fall below $7,000 again.

A few digital currency exchanges reported heavy Bitcoin selling volume on August 3 and just before lunch break on Wall Street. A couple of exchanges were engaged in selling for the purpose of settling lawsuits; nonetheless, Asian exchanges noticed an uptick in small buy orders on Saturday morning. With enough buying volume, the 100-day moving average strategy will no longer feel like a safe position.

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Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, TRON: Price Analysis, August 03
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