After a turbulent 24hours triggered by the sudden increase in the price of Bitcoin, the crypto market has finally stabilized. On crypto-only, as well as Tether-integrated exchanges such as OKEx, Huobi, and BitFinex, the price of Bitcoin exceeded $7,700, because the value of Tether or USDT, which is supposed to be pegged to one of the US dollars on a 1:1 ratio, also fell substantially by more than 7%.
This drop of 7% in the price of USDT from $1 to $0.93 led BTC premium on crypto-only exchanges to rise by an identical margin, inflating the value of Bitcoin. The real price of BTC on fiat-to-crypto exchanges such as Kraken, Coinbase, as well as Bitstamp peaked at $6,700.
The stabilization of the market after the wild fluctuation
Since that period, the price of Bitcoin fell from $6,700 to $6,450, by around 4%. However, taking into consideration the abrupt surge in the value of Bitcoin from $6,150 to $6,700 within a few hours, a pullback was also expected.
Within a two-day period, the price of BTC increased from $6,150 to $6,450, and it was also supported by a spike in daily trading volume. Overall, the state of Bitcoin remains importantly more positive than it was in the last week.
Per Coinmarketcap, the daily trading volume of BTC increased from $3 billion to $7 billion during the earlier day, by more than two times. The CoinCap.io of ShapeShift also demonstrated a two-fold rise in the volume of Bitcoin, from $2 to $5.6 billion.
Bitcoin will have to surpass the $6,500 mark
DonAlt, which is a crypto technical analyst, stated that it was closed at resistance and it might be getting a retrace today. DonAlt also said that it is generally leaning bullish, so it is not shorting the way down, but it is waiting to support to re-log Would love, get a daily close at the top of the green box.
In order to confirm a proper short-term rally, Bitcoin is going to need to surpass the $6,550 mark, as well as a breakout of the $6,800 resistance level. Technical indicators of Bitcoin are not all utterly positive at the time of reporting, but the substantial volume of the dominant cryptocurrency is probably going to increase the probability of a strong trend reversal.
The company which oversees the development of Tether, known as Tether LLC, issued a statement, clarifying that USDT is sufficiently backed by US Dollars, reassuring the market that USDT is stable.
From $6,450 to $6,800
The firms stated that they would like to reemphasize that even though market have confirmed temporary fluctuations in price, all USDT in circulation are enough backed by US Dollar or USD, and those assets have always exceeded liabilities.
But, the statement of Tether LLC is not going to be enough to alter the ongoing trend of traders, turning from USDT to audited, regulated, as well as transparent alternatives such as Gemini Dollar, PAX and TrueUSD.
As it is presented in the price chart of Bitcoin on Bitstamp, Bitcoin is en route to test significant resistance levels in the $6,000 region. Fidelity, which is the largest brokerage by assets under management in the world, also announced that it has some plans to facilitate crypto plans, which could presumably serve as a catalyst to fuel the following rally of the crypto market with the bringing of accredited investors in the regulated US markets.