Bitcoin price (BTC/USD) drops below $4,000 as rally cools off

The Bitcoin price (BTC/USD) has dipped below $4,000 to its lowest levels in more than a week, amid signs that the recent rally might be cooling off.

The digital currency has so far enjoyed a remarkable run in August, rising from around $2,700 at the beginning of this month to a new high of around $4,500 last week. But according to some traders, the rally might be reaching its peak.

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Industry website CoinDesk cited BTC VIX, a Bitcoin trader known for organising the cryptocurrency trading group Whale Club, who revealed that he was losing confidence in the rally. He pointed to the fact that the Bitcoin price had dropped below $4,000 four times since first surpassing the milestone, arguing that this was a sign that the market sentiment was not supporting further price gains in the short term.

“The bulls are tired,” he said, as quoted by CoinDesk.

Some market watchers have suggested that Bitcoin might stabilise around the $4,000 mark. Mike Kayamori, the chief executive officer of Japan-based Bitcoin exchange Quoine, suggested that the drop below $4,000 was a sign of consolidation.

“[The market] could go lower, but the next big date will be the Segwit2x in November,” Kayamori said, as quoted by CoinDesk.

His remarks refer to the increase of the Bitcoin block size from 1BM to 2MB – the second phase of the SegWithx2 scaling proposal, which is expected to take place in November.

In today’s trading, the Bitcoin price stood at $3,902.84, as of 10:34 BST. The cryptocurrency has lost 3.6 percent over the past 24 hours.