Bitcoin: downside risks still persist

Bitcoin: downside risks still persist

Bitcoin / Dollar BITFINEX:BTCUSD


Bitcoin             trading was quite calm during the weekend, with the price has been consolidating above the $6,300 area after a drop to fresh 2018 lows earlier last week. The digital currency makes shallow recovery attempts on Monday and so far fails to attract buyers, which confirms that the bearish risks still persist.

The recent hacks in South Korea did have a great impact on the cryptocurrency market, despite the events in fact haven’t affected any large coins. It’s a matter of trust in the industry which so far remains rather low due to the unresolved security issues, while the lack of regulation adds to uncertainty among investors. That’s why bitcoin             fails to regain its attractiveness after last year’s rally.

In the short term, BTCUSD             needs to get back above the $6,600-6,700 area to get a chance for a more pronounced recovery. However, on the whole, the demand will likely remain too timid so far, and the bearish risks are still here. On the downside, the $6,000 threshold remains the key support area .