Markets Update: Bears Drag the Bitcoin Price Down to New Lows

This week the price of bitcoin has been descending downwards following a bearish trendline and is currently hovering just around the US$2000 range. The price started its downtrend on July 10 after staying around the $2550 territory for a few days, but subsequently started dropping to a low of $2225 on July 14. At press time the price of BTC is struggling to stay above $2K, and current technical indicators are showing the bear run may not be over.

Also read: August 1 and the Potential Disruption of the Bitcoin Network

Fear Uncertainty and Doubt Plagues Cryptocurrency Markets

It’s been a pretty grueling week if you’ve been watching cryptocurrency markets, as bitcoin and various altcoins have drastically corrected in value. On July 14 bitcoin’s price formed some new lows dipping to the $2225 range forming a downwards triangular pattern. Over the course of the day and into the overnight the price per BTC continued to slide until finally subsiding to just above the $2K mark. The decentralized currency’s total market capitalization is now only $33 billion, but due to the significant drop in altcoin markets, BTC dominance is up to 46 percent. Bitcoin trade volume is seeing mediocre activity compared to weeks prior at roughly $1 billion USD worth of trading per day.

Markets Update: Bears Drag the Bitcoin Price Down to New Lows
BTC/USD July 15, 2017, 9:30 am EDT.

BTC/USD Technical Indicators

Technical indicators show that traders have allowed bears to reign over the market and the ball is in their court now. At press time the long term 200 Simple Moving Average (SMA) is well above the 100 SMA, pointing to continued market losses. The Relative Strength Index (RSI) has dropped pretty low since July 12 indicating the beginning of the seller’s market takeover. Further stochastic indicators are also signaling bearish conditions and those shorting the market may be able to set some downside targets. However, at the time of writing, there is a significant foundation at the $1950-2K range and the price may hover in this vicinity for a few more hours.

Markets Update: Bears Drag the Bitcoin Price Down to New Lows
Bitstamp BTC/USD prices July 15, 2017, 9:30 am EDT.

Market Sentiment: Upcoming Protocol Changes Has Likely Created Weak Hands  

The bearish market sentiment is likely due to the protocol changes planned for the end of the month. There have been many discussions on the various scenarios where the bitcoin blockchain could split on August 1. Many bitcoiners are patiently waiting to see if the storm passes, but no one knows exactly how things will play out between UASF, UAHF, and Segwit2x. Some bitcoin proponents are fairly positive that Segwit will be implemented soon and the August 1 scenarios may not happen. Other bitcoin enthusiasts are waiting for the next Segwit2x release that is expected to come out this weekend, according to Jeff Garzik. When this happens, the vast majority of miners signaling support for Segwit2x will actually start running the code.

The uncertainty tied to the bitcoin ecosystem is likely affecting altcoins markets as well. Just like Crypto Compare’s Charles Hayter told us last week, “a rising tide lifts all boats, but the opposite is also true.”

Waiting on the Sidelines for the Perfect Entry Point

Overall bitcoiners are either not happy about the price drop or enthusiastically detailing they are buying the dip. It’s safe to assume as the next two weeks get closer, there will be some volatile action for intra-range players to profit off scalps and breaks. Some traders are speculating that Segwit will be activated soon and the price will reverse back up the ladder. Other traders are envisioning a continued drop to the $1800 territory and a possible following rise after that low price point. One thing is for sure is that traders are uncertain right now and the bulls have stepped off to the sidelines for a lower price entry.

Bear Scenario: If bitcoin breaks the key resistance range below $2K we will see lower trajectories towards the $1800-1900s. At press time according to order books and depth readings, there is a solid foundation within the $1800-2000 territory that should certainly last for the next few days. These critical zones, however, can cause quite a bit of fear and uncertainty which can always spark the possibility of more intensified panic selling.

Bull Scenario: If buy pressure picks up after consolidating above the $2K range we could see some nice recovery over the next 24-hours. Sell walls are pretty flat at the moment, and the price could break higher with ease if bullish traders decide to jump back in the game. However, it seems most buyers are waiting for a lower price trajectory and are assuming this will happen with the current looming possibility of a chain split. Another bullish theory that could take place is; Segwit gets activated within the next two weeks, and the price climbs upwards following this event.

Where do you see the price of bitcoin going from here? Let us know in the comments below.

Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

Images via Shutterstock,, and Bitstamp.  

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  • Ganancia Diaria Para Ti

    Que no cunda el panico, Sres, lo que hiba pasar tiene que pasar, de modo que la inversion en BTC es la salvacion? esto esta controlado de todas formas por sentimientos humanos.

    • Mackenzie Salisbury

      Por supuesto, pero espero que el pánico siga cundiendo y los compradores inteligentes que no tienen miedo de los sentimientos ganen mas…

      • Ganancia Diaria Para Ti

        exelente, siempre la verdad triunfa y la verdad supera aun a la inteligencia, pero vamonos siempre hacia arriba.

  • Liberty88

    Crypto is ON SALE!
    It will go much, much higher. Buy while you have a chance.

    • sjs

      Based on what? If they can do it once they can do it again. The maintenance and support issue for crypto software has to be removed from individuals that can run this project into the ground. $115B down to $60B. If this was perpetrated on the share market it would be akin to 1929. Who in their right mind would invest one more dollar into bitcoin or alt coins even if there is a recovery of sorts. I cannot fathom, irrespective of the potential of cryptos, any additional investment. A great idea ruined. It does not matter whether bitcoin goes much much higher – it has become UNTRUSTWORTHY !!

  • Karl Hegbloom

    Deregulation of wheat prices led to the Frence Revolution… Silver prices have been manipulated in the past as well by wealthy men who had a lot of money… I say fix the bitcoin price to a certain value, by agreement, not by government regulation, but by bitcoin user agreement… 1 BTC at 1000 dollars? 10000 dollars? 1 loaf of bread? 10 slices of cake with all the beer you can barf a canful of?

    • Zac Sand

      Valuing Bitcoin in dollar only cheapens it.
      The old adage holds true: “When a Bitcoin can be sold for a million dollars apiece, you won’t need to.”
      Having a secure store of value free from inflation is priceless!

      Satoshi invented Bitcoin because the banks thought it would be a good idea to deliberately crash the world’s financial system and bet on it crashing.
      So, the banks did crash it, and a whole lotta good folks ended up getting hurt.

      Have respect for the beautiful gift Nakamoto gave us.
      Satoshi Nakamoto didn’t invent Bitcoin so people could “cash out” at a higher dollar value.
      Bitcoin gives us an honest money system that we own, free from the tyrannical rule of the banks, there is no dollar value for that.

      • Karl Hegbloom

        But when a merchant buys with dollars, and sells for either dollars or bitcoin, there has to be a way to know a fair price, requiring an exchange rate.

        • Zac Sand

          Yes, I agree.
          I was speaking in general terms about some people’s need to measure the value of Bitcoin in dollar amounts as if dollars were the benchmark for value.
          Here’s a thought, let’s start saying “One dollar is worth 0.00050660 Btc”not “one Bitcoin is worth X amount of dollars”, that kinda puts it in perspective.
          I personally think Gold is a far better benchmark.

      • Richard Wiig

        All things find their value against other things as set by supply and demand. Demand is what ultimately sets the value of Bitcoin. If demand drops to zero, then its price will be zero in terms of fiat, gold, silver, or chocolate bars. On the contrary, valuing it highly against fiat doesn’t cheapen Bitcoin. If anything, it cheapens fiat. BTW, you cannot fix a price. Its true value can only be found under freedom where people are free to value or not value it as they choose. The current wild fluctuations shouldn’t really surprise anyone. It’s a very new technology and no one knows exactly where it is headed. Trust takes time. Look at fiat. It has an immense amount of trust, even though there are many valid reasons not to trust it.

  • I have been trying to buy some bitcoin off of coinbase for 2 days and it wont let me buy,something is up here!!!

    • Zac Sand

      Of course, this is the banksters big push. You notice every time there’s a Bitcoin rally Coinbase shuts down? Time to do Local Bitcoins or use Bitcoin ATMs.

    • Joe Shmo

      So dont buy bitcoin then jeff. Buy ETH or LTC, then swap that for btc somewhere else.

  • Tajinder Singh

    What should be buying price if bitcoin price further drop

    • Brett Ferguson

      Stagger your buy orders and buy more as the price goes down or less if it goes up.

  • sjs

    Nakamoto designs and implements the software and the fully functioning bitcoin crypto. Then a bunch of nobodys appoint themselves to dictate their version of bitcoin while a bunch of control and money hungry miners carve out a niche to make a quick buck. There is an absurdity here. Nakamoto wanted to be anonymous but the maintenance programmers are gaining fame for all the wrong reasons. How did these rats ever manage to gain such control and prominence when the overriding philosophy was decentralization. The control and power is now concentrated in very few hands. Even if this issue gets sorted, bitcoin has been damaged. The very concept of attaining a degree of freedom is no longer in tact. The facts now are that a few can dictate to the many. How does this differ from governments, bankers and officialdom? The entire concept is fragile and seriously flawed and it’s there for all to see.

    • Deniseds

      Exactly my thoughts and the reason why I think most coins will die eventually. That’s also why I love the Decred concept, where the holders can vote for upcoming big decisions.

  • Gary Sachs

    It looks like the bear scenario of $1800-$1900 is playing out!

  • I think the price will go lower and the bear market is not yet over. Also, I want to tell the truth it is a depressing week for Bitcoin.

    I send a vibe of energy to all bitcoins all over the world, to the team who work hard to scale it. In the end, the upgrade should go well, and all the tokens will dance on every wallet 🙂

  • sjs

    Someone is sabotaging this project, this is nothing like Mt Gox, this is obtuse stupidity or deliberate systematic destruction and I am betting on the latter.

  • JohnnyAp

    you guys have nothing to say ….us your real profile pic so at least we know whos the nobodies…This is the only thing close to a secondary market it will take more then a decade to stabilize ..but the kids of our kids will enjoy it…DO you ear Chinese people complain NO they do it for their prosperity .. Losers!!