Coming off last week’s lull, bitcoin traders hoped the market would provide them with some direction. This has not been the case.
The No. 1 digital currency is on track to top last weeks’ record tight range for 2018, having not traded outside of the $7,300 to $7,800. In fact, as at early Friday trading the bottom-to-top range for bitcoin this week is just 5.3%.
A single bitcoin
last changed hands at $7,572.07, down 1.1%, since Thursday 5 p.m. Eastern Time on the Kraken crypto exchange.
The pain isn’t over
While many bulls believe the recent quiet run is the formation of a base for another move higher, one perennial bear, who called the move lower from $9,000, thinks the worst is yet to come. “This cryptocurrency had a very ugly May and it looks like things will only get worse,” said Jani Ziedins in a Friday blog post.
“This is a long-term downtrend and lower lows are still ahead of us. Breaking $7k support will trigger to another wave of selling, but the fear won’t strike in earnest until we undercut the $6k lows.”
A break of the $6,000 low represents another 20% fall.
Can improving regulatory outlook lift bitcoin?
Still holding on to his $25,000 year-end target price, Tom Lee, managing partner at Fundstrat Global Advisors said the regulatory outlook could be the impetus for digital currencies to move out of the bear market. “In our view, the fact that Coinbase and Circle, two major crypto players, are moving closer to SEC regulatory reach, suggests implicitly, that the crypto regulatory outlook is on balance, improving,” said Lee in a June 7 research note.
“Think of it this way, why would two major players take deliberate steps that bring them deeper into the regulatory reach, unless they felt agencies were moving towards providing better clarity.”
Altcoins and futures off to a sluggish start
Major altcoins, or coins other than bitcoin, are showing losses. Ether
the second largest digital currency by market cap, is down 0.9% at $596.32, Bitcoin Cash
is holding above $1,000, trading at $1,093.40, down 3.6%, Litecoin
is lower by 1.5% at $118.49 and Ripple’s XRP coin
is down 1.2% at 66 cents.
Bitcoin futures are in the red. The Cboe June contract
is down 1.5% at $7,575, while the CME June contract
is down 2% at $7,550.