The cryptocurrency markets continue to recover, with bitcoin prices trading above the US$6,500 levels ever since dropping to the recent low of US$5,971.05 on Aug 14.
The year’s low for bitcoin was US$5,826.41, according to CoinMarketCap data. Market sentiment remain cautious, with investors wondering if this is just a short-term recovery or even another pump-and-dump.
Analysts see key resistance still at the US$6,500 levels but believe that there is still buying momentum.
One analyst says there is a high chance of a rejection at US$6,800, which could see bitcoin prices falling back to the US$6,400 levels.
He suggests for those taking positions to shed 50% of their holdings at US$6,800 and buy back if fall to US$6,400, otherwise add 50% and ride the momentum to US$7,200.
His personal target for bitcoin is for prices to hit US$7,135. “If looking at this level then investors should close position at US$7,050,” he says.
He adds that those looking at altcoins should accumulate now while prices are still cheap as September is when momentum will pick up.
He says the targets for bitcoin and altcoins are dependent on the cryptocurrency’s prices hitting US$8,700 in the next 10 to 14 days. He is targeting OMG to hit US$12 and NEO to hit US$60 by the end of September. OMG is trading at US$4 and NEO at US$19 levels currently.
Bitcoin prices are up 2.79% over the 24-hour period to US$6,569.55, Ethereum rose 7.17% to US$316.14, XRP jumped 20.72% to 35.83 US cents, bitcoin cash was up 12.60% to US$595 and EOS was 17.72% higher at US$5.50.