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.
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.
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.