Bitcoin bulls see silver lining as speculators flushed out

Story by: AARON HANKIN

The topsy-turvy week for digital currencies looks set to continue with most major coins trading higher Thursday, bucking Wednesday’s moves where most digital currencies finished the day in the red.

After surrendering the $8,000 level on May 22, the price of bitcoin, the worlds biggest digital currency, has traded in a tight range around $7,500 and the lack of follow-through is a good sign for owners of bitcoin, says one analyst.

“When we have broken key levels we haven’t seen the continuation moves like we did in April with people getting liquidated,” said Mati Greenspan, senior market analyst at etoro. “It seems the leverage positions have been chased out, which means people are buying it because they need it.”

Greenspan cited countries such as Venezuela and Argentina where there is a real demand for the No. 1 digital currency as a convertible currency and a store of wealth.

After reaching an overnight low of $7,324.16, the price of a single bitcoinBTCUSD, +3.17%  has rebounded, last trading at $7,549.99, up 2.9% since the Wednesday level at 5 p.m. Eastern Time on the Kraken exchange.

Read: Hospital launches rehab clinic to treat cryptocurrency addiction

The up-and-down move in bitcoin has continued into the altcoin market, digital currencies other than bitcoin. Ether ETHUSD, +6.41% is up 4.9% to $575.54, Bitcoin Cash BCHUSD, +4.62% is up 4.6% to $1,011.60, Litecoin LTCUSD, +2.59% has added 2.2% at $119.49 and Ripple’s XRP coin XRPUSD, +5.32% is up 4.1%, last changing hands at 61 cents.

Bitcoin futures too are clawing back some gains Thursday. The Cboe June contractXBTM8, +3.30% is up 2.90% to $7,560, while the CME June contract BTCM8, +3.55% is at $7,570, up 3.4%.

Original story: https://tinyurl.com/ycqd2dfz

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