The price of bitcoin fell briefly on July 31st, dropping by 4 percent from $8,150 to $7,800 as declines were also recorded in both major cryptocurrencies and small market cap tokens value.
However, few hours following the drop, the price of bitcoin recovered from $7,800 to $8,150, marking a swift recovery from its significant decline. Yet, other leading cryptocurrencies and tokens were not so lucky to make an instantaneous recovery, dropping by significant margins compared to bitcoin and the USD.
On July 30th, CCN noted in its report that the value of bitcoin could possibly decline from the $8,150 towards the higher end of $7,000 as a result of the volatility in the market.
The report of the CCN stated, “If BTC fails to maintain its volume and falls below the $8,100 mark, it is possible for BTC to test a major support level at $8,000 and eye a drop below the $8,000 mark. If BTC finds stability in the lower end of the $8,000 region, a short-term bottom will likely be found at $8,000, with expected recovery to $8,500.”
As predicted, the price of bitcoin dropped below the $8,000 level, however, the immediate recovery from the $7,800 level was not expected by most traders, as if happen very rapidly.
Some investors, such as Peter Brandt have noted that in the mid-term, a price increase to $9,400 is expected for the bitcoin price, following a recovery this week. Being that for the past three months, the bitcoin price has been able to test the $10,000 level twice, a shift to the mid-$9,000 level is a likely possibility.