The Bitcoin price (BTC/USD) has been unable to secure a stable position above the $6,500 mark, despite having a couple of stints above that level in recent trading.
The original cryptocurrency enjoyed some positive price action yesterday, as it rallied to reclaim the $6,500 mark. However, after hitting a three-week high of $6,556.38, the digital coin experienced a sharp pull--back, which erased its earlier gains in late trading. Bitcoin finished the Sunday session at $6,482.35, slightly lower than its opening level of $6,490.09.
Following a slow start on Monday, the digital currency has resumed its attempts to secure a break above $6,500, but its performance has so far lacked the same positive momentum it enjoyed yesterday. The coin reached an intraday high of $6,511.53, but has since retreated to lower levels. At the time of writing, the Bitcoin price was hovering around $6,480, according to data from digital currency tracker Coinmarketcap.
Bitcoin has mostly been trading around the $6,500 mark for the past several weeks, unable to make a kick-start a new bull run. At the same time, the coin has shown resilience in defending the $6,000 level, which has prompted some prominent figures in the industry to say that the market has bottomed.
In a recent interview for Youtube channel Crypto Tips, Fundstrat Global Advisors’ head of research Tom Lee said that the company believed that the $6,000 level was indeed the floor for Bitcoin and it was supported by the break-even for Bitcoin mining, which, as estimated by Fundstrat, was currently around $6,000.
Asked about his earlier forecast that Bitcoin would reach $25,000 (it was later scaled back to $22,000), Lee noted that the figure reflected Fundstrat’s estimate that Bitcoin’s break-even would reach $8,000-$9,000 by the end of the year, as well as the historical trend of the cryptocurrency usually trading round 2.5 times its break-even. However, he admitted “people are too bearish”.
Lee argued that “when markets are bottoming” people were much more inclined to expect a negative than a positive. “I know a lot of people think Bitcoin could collapse to $3,000. I think what’s a more probable surprise is we have a very explosive increase in price,” Lee said.
In today’s trading, the Bitcoin price stood at $6,479.71, as of 10:49 BST. The digital coin has lost 0.7% of its value in the past 24 hours. Its total market cap currently stands at $112.3 billion.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.