Bitcoin has enjoyed a strong six months in 2019. However, Bitcoin’s price is set to dip below the monthly open in July. The Bitcoin decline, however, comes despite the longer term outlook of the cryptocurrency remaining positive.
At the time of press, bitcoin was down to $10,001. That’s some way short of the $10,759 it opened with at the start of the month. The Bitcoin decline comes off the back of five successive months of growth. A period of time in which the world’s largest cryptocurrency posted gains of 11, 8, 28, 62 and 26% growth respectively.
Nevertheless, Bitcoin’s overall long-term picture remains strong. Some analysts are taking the recent trend as a sign of temporary bull exhaustion, rather than the start of a more significant underlying trend.
Omkar Godbole, an analyst at CoinDesk, said that bitcoin was set to end its five-month winning run. He said that prices will likely to close the month lower than they opened.
“Bitcoin looks set to end its five-month winning streak with prices currently down 9 percent from the monthly opening price of $10,759, according to Bitstamp data. A low-volume price breakout seen on 4-hour chart indicates BTC may have a tough time scaling key resistance at $10,235 in the next few hours.”
However, Godbole stressed that despite the temporary slump, the long-term technical outlook for bitcoin remained positive.
“Long-term charts retain the bullish bias despite the monthly loss. A UTC close above $11,120 is needed to revive the short-term bullish outlook.”
Bitcoin bulls will naturally be feeling disappointment. However, the negative close is far from the most drastic decline bitcoin has suffered in recent memory.
After a challenging year through 2018, the slide has been seen by some as part of a consolidation of price, ahead of what the charts show to be a strong medium to long-term picture.
Godbole notes that the winning streak followed on from a six-month negative run, with this month’s drop the biggest decline since November of last year.
“BTC’s five-month winning streak was preceded by a record six-month losing run. The 9.3 percent drop seen at press time is the biggest monthly loss since November 2018.”
Nevertheless, bitcoin remains in a strong position for the rest of 2019. In fact, most expect a continuation of the rally that has been predominant throughout this year.