Following a tough day initiated by the unexpected rise in the price of Bitcoin, the crypto market has calmed.
On cryptocurrency-only and Tether-integrated exchanges such as OKEx, Huobi, and Bitfinex, the price of Bitcoin surpassed $7,700 as the value of Tether (USDT), which is thought to be attached to that of the US dollar on a 1:1 ratio, dropped significantly by over 7 percent.
This drop resulted in Bitcoin value on cryptocurrency-only exchanges to increase by a similar margin, increasing the value of BTC. The real Bitcoin price on fiat-to-crypto exchanges such as Kraken, Coinbase and Bitstamp rose to $6,700.
From that time, the price of Bitcoin has dropped from $6,700 to $6,450 by nearly 4 percent. However, given the sudden increase in the value of BTC from $6,150 to $6,700 within few hours, recovery was expected.
Within 48 hours, the Bitcoin price rose from $6,150 to $6,450, sustained by an increase in daily trading volume. As a whole, the state of BTC remains more positive than last week.
CoinMarketCap explains that the daily trading volume of Bitcoin rose from $3 billion to $7 billion in the past day, by over two times. ShapeShift’s CoinCap.io also showed a two-fold increase in the volume of BTC, from $2 billion to $5.6 billion.
“Closed at resistance. Might be getting a retrace today. I’m generally leaning bullish so I’m not shorting the way down, I’m waiting at support to re-long would love to get a daily close at the top of the green box,” cryptocurrency technical analyst DonAlt explained.
To maintain a proper short-term recovery, BTC should exceed the $6,550 level and break out of the $6,800 resistance level.
Tether LLC, the company that manages the progress of Tether, revealed a statement explaining USDT is adequately supported by US dollars, encouraging the market that USDT is stable. The company noted:
“We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation is sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities.”
But, the statement of Tether LLC is not enough to change the present movement of traders moving from USD to audited, regulated and transparent options such as Gemini Dollar, PAX and TrueUSD.