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Digital Currencies Steady, Bitcoin on Pace to End the Week Lower

Digital Currencies Steady, Bitcoin on Pace to End the Week Lower

Created by TradeOr

3rd Party Analysis 27 Aug 2021

Key Takeaways:

  • Bitcoin trades above $47,400 on Friday after a 4% loss on Thursday
  • Digital assets keep steady, ether trades near $3,100, dogecoin floats around $0.27

Digital Currencies Are Stable After Slide On Thursday

Digital asset traded fairly flat and modestly to the upside on Friday. Following Thursday, they slid broadly following a jittery session a day earlier.

Bitcoin declined about 4%, or nearly $1,900, to close Thursday’s session at $46,960. Other major assets on the crypto board, including ether and dogecoin, were also under pressure and finished lower by 3% and 8%, respectively.

The price of bitcoin has been gyrating around the area of $47,000 to $48,000 throughout the week. Since the crypto asset hit $50,000 on Monday, traders and investors have endured bouts of volatility as the price of bitcoin has struggled for direction.

Bitcoin yesterday slipped to a session low of $46,300. Moreover, it approached the 200-day moving average just a week after it climbed above it in signs of a strong recovery. While the asset is still firmly to the upside in the medium-term. Bitcoin’s price turbulence has increased the bearish sentiment as the week is about to end.


Pressures Mount To Keep Gains Above $50,000

The leading cryptocurrency’s failure to keep gains above $50,000 is pushing bitcoin into the red for the week. Bitcoin’s price is on pace to snap four straight weeks of winnings unless bulls lift it above this week’s opening level of $48,300 per coin.

Presently, bitcoin is gyrating near $47,400 per coin, up less than 1% on the day.

Elevated selling pressures in the second-biggest coin, ether, have kept it below its recent highs of $3,300 but still in the consolidation area above $3,000. The Ethereum coin is now hovering near $3,100, little changed on the day.

Dogecoin, the cryptocurrency created as a joke that shot up to an all-time high of nearly $0.75. The coin is currently changing hands at around $0.27, down about 1% on the day.

One reason cited as a potential trigger for the broad-based crypto selloff is the expiration of the monthly options on bitcoin. About 42,000 option contracts worth around $2bn are set to expire today. Another reason, according to crypto analysts, could be heavier profit-taking since bitcoin hit $50,000 on Monday.

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