Bitcoin Turns Negative After a Strong Weekend of Gains

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Created by TradeOr

3rd Party Analysis 05 Jul 2021

Key Takeaways

  • Bitcoin trades to the downside on Monday, after it gained 8% over the weekend
  • Ether is also negative today, following a 14% climb in the last couple of days

Bitcoin Turns Negative

Bitcoin, the world’s biggest digital token, fell more than 4% in Monday’s trading after it appreciated nearly 8% over the weekend. The flagship cryptocurrency posted a solid two-day gain boosted by crypto traders’ expectations that the consolidation could be broken.

For the past six weeks, Bitcoin has been trading in a range between $30,000 and $40,000 as market participants are unable to decide on the next direction for the crypto asset.

Earlier today, Bitcoin reached a five-day high as it peaked above $35,900. Buyers’ efforts, however, were insufficient to sustain the upside swing, and, presently, the number one digital currency is trading near $34,000, down 5% on the day.

Bitcoin is still experiencing difficulties after it ended the second quarter down 41%, its worst quarterly performance since 2018. Despite the aggressive selloff, Bitcoin bulls remain committed to supporting their narrative that the coin’s future will bring a recovery in the asset’s price. They cite institutional backing as the major difference between the current crypto wave and the 2018 retail-inspired cryptocurrency rally.

Ether Slips Following the 14% Climb

Ether, the second largest cryptocurrency, also sprinted during the weekend. The Ethereum coin added almost 14% to reach a three-week high of $2,370. Today, however, the price has been pressured and the token is trading around $2,270, lower by 3.3% on the day.

Ether has been a stronger performer for the year, compared to Bitcoin. Since the start of the year, ether has advanced 212% to date, while Bitcoin’s price has climbed about 17% to current levels. As the market is trading to the downside, crypto enthusiasts are awaiting the next price catalyst that will bring Bitcoin out of the yearly bottom and embark on its further appreciation, supported by a large network of corporations, investment banks, financial institutions and professional investors.

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