Bitcoin bulls are feeling the heat as profit booking and fresh selling continues to weigh on the price. My last analysis Bulls Giving Up? revealed that the appreciation of the US dollar following the announcement of the Federal Reserve regarding the first hike in interest rates was one of the reasons that are weighing on the Bitcoin market.
Another economic reason that will keep the Bitcoin prices depressed is the latest quarterly US GDP numbers. GDP rose at 2.3% in the second quarter and the first quarter numbers were revised upwards to a 0.6 percent advance, wiping out a previous reported contracted, accorded to Bloomberg. Better economic growth improves the prospects of a September rate hike.
Bitcoin is trading at $287.96, $1.77 or 0.61% lower than yesterday’s price.
Technically, things have turned slightly more bearish for Bitcoin and calls for creating short positions on rallies.
Bitcoin Chart Structure – The daily BTC-USD price chart above indicates that Bitcoin pierced the support level of $286 intraday before paring some losses. The price hit a low of $284.53, and I