Bitcoin is trading down nearly 2% at its current price of $10,400, which is down significantly from its 24-hour highs of over $11,000 that were set yesterday after the cryptocurrency sharply moved upwards before incurring a massive influx of selling pressure.
In contrast, Silver has been consistently skyrocketing for the past several weeks, and is currently trading at $16.19 per ounce, which is up significantly from its recent lows of $14.3 per ounce that were set in early-June.
Could Silver’s Price Surge Be the Result of BTC’s Decline?
Importantly, one analyst believes that Bitcoin’s recent volatility has done severe damageto its image of being a digital safe haven investment, and that the outflow of capital from BTC may be entering commodities like Silver and Gold.
As Bitcoin’s volatile price action continues to unfold and analysts gain a greater understanding of where it is heading next, it is highly likely that the state and status of its recent bull run will grow increasingly clear.
Since July 10, within two weeks, the bitcoin price has declined from over $13,000 to $10,600, by more than 18 percent against the U.S. dollar.
At its lowest point this month, the bitcoin price came close to dipping below the $9,000 level, dropping to as low as $9,080.
Although BTC has shown relatively strong recovery throughout the past week, it has struggled to cleanly break out above $11,000, which has acted as a key resistance level for bitcoin throughout July.
Consolidation for bitcoin expected
Michael Novogratz, a billionaire investor and the CEO of Galaxy Digital, said that bitcoin is likely consolidating currently before initiating its next move higher in a statement.
“If BTC goes to $100, it is game over. It won’t. It’s already established itself as a store of value. Stop wasting your time with these tweets and go outside and enjoy the summer. BTC is consolidating before its next move higher,” he said.
Josh Rager, a cryptocurrency technical analyst and trader, indicated that from a technical perspective, bitcoin has not cleanly broken out of the $10,850 resistance level, which many traders have emphasized in the past several days.
“Daily time frame resistance did its job & price closed under after that $400+ wick It’s always good to wait for a retest to make sure a broken resistance holds as support & this is a clear example Neutral at the moment & still in range,” noted Rager.
When the bitcoin price initially moved past $10,500 after recording a nine percent rally within a span of minutes on July 19, traders indicated that the $10,850 resistance level would have to be breached to confirm that the short term trend of the asset is bullish.
“10.4 met. No violent reaction, no rejection – BTC looking decent. Let’s see reaction at this next resistance. Punch and close above $10,850 and things start looking substantially bullish,” one trader said at the time.
Bitcoin has not been able to reclaim $10,850 since then despite briefly surpassing beyond $11,000 on July 20.