- Bitcoin is reclaiming territory below $8,000.
- Crypto supporters don't lose hope for recovery.
Bitcoin slumped over 4.5% since this time yesterday to $7,920 at the time of writing. The coin is moving within a clear downside channel visible on the hourly chart with critical resistance levels clustered around $8,400 area. Downside trendline is registered at $8.384, marginally below psychological $8,400, while 50% Fibo comes at $8,424. Considering strong resistance it is unlikely that we will see BTC above this area any time soon.
Meanwhile, crypto enthusiasts go on insisting that Bitcoin and other coins have strong long-term potential, which will be unlocked eventually after a period of weakness. Thus, John McAfee urges traders to be prepared for the upcoming crypto rally due to influx of capital from institutional investors.
"Institutional investors are preparing to enter the cryptocurrency market with a vengeance. They are generally long-term investors and will be pumping billions into the market. Expect the top ten coins to go through the roof fairly quickly. The bulk of alt coins will soon follow," he wrote in his Twitter account.
BTC/USD, the hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.