Bitcoin Drops to $6,560 as Analysts Point to Potential Q4 Rally

Francisco Memoria
  • Bitcoin has sen its price drop nearly 2% today, in what seems to be a correction.
  • Various analysts are pointing to a potential Q4 rally.

Bitcoin, the flagship cryptocurrency, has recently seen its price drop in what appears to be a correction from yesterday’s surge to over $6,700. Various analysts believe the last quarter of this year could see the cryptocurrency enter a bull run.

According to MarketWatch, Naeem Aslam, chief market analyst at Think Markets UK, noted the end of September means we’re entering the last quarter of the year, which reminds him of last year’s bull rally. He was quoted as saying:

September is coming to an end and a very interesting quarter is about to start. Does it remind you of anything? ... It appears to me that a similar momentum could be building up again. This must be music to those who are suffering from heavy losses in the crypto market.

As CryptoGlobe covered, a seasonality chart from Element Digital Asset Management has shown the flagship cryptocurrency’s returns in the fourth quarter of most years have been impressive. In 2015, 2016, and 2017 there were a total of 14 days where its price dropped.

The firm’s portfolio director, however, noted that bitcoin is a very young currency and as such the data used to make the chart is small and it could’ve all been a coincidence. However, an analysis of the RIG trend lines, a technical indicator that combines the Relative Strength Index (RSI) with momentum studies, shows the cryptocurrency’s momentum gauge surpassed the RSI gauge, which points to a bull run.

So far this year, the cryptocurrency is significantly down, although most losses came in the first quarter, when the market cap of all cryptocurrencies dropped $300 billion. Bitcoin saw its value decline from a YTD high of over $17,000 to about $6,560 at press time.

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Since July 1, MarketWatch points out, seven of the ten largest cryptos by market cap saw their price decline, with Ethereum’s ether being the biggest loser, slipping over 50%. At its lowest point, at about $170, the cryptocurrency was nearly down 90% from its all-time high of over $1,400, according to CryptoCompare data. It’s at $232, after rising nearly 4% in the last 24-hour period.

XRP managed to briefly become the world’s second-largest cryptocurrency by market cap when ETH was down, and is one of the best performing cryptocurrency in Q3 so far. As CryptoGlobe covered, it surged earlier this month over “rumors and speculation.” It’s trading at $0.53, and is up 2.4% in the last 24 hours.

Other top cryptocurrencies, including litecoin, EOS, and bitcoin cash, are all down anywhere between 1.7% and 2%. Ethereum Classic is seemingly countering the downward trend, along with Tron, as these are up by 0.5% and 0.3% respectively.