The price of Bitcoin (BTC) continues to decline and has fallen to $115,000 as institutional investors sell the largest cryptocurrency and rotate into Ethereum (ETH).
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Analysts and traders say that Bitcoin faces a key resistance level at $115,000 as it slides lower after hitting an all-time high of $123,000 earlier in July. Some bearish analysts are forecasting that the price of Bitcoin will drop back down to its previous record high of $111,000.
The current correction is not new, however, as Bitcoin frequently cools off after a big run higher. Usually, BTC retests its previous breakout high, which hasn’t happened this time. The latest pullback in Bitcoin comes as investors large and small rotate into Ethereum, which is in the midst of a breakout.
ETH Breakout
At its current price of $3,600, Ethereum has risen more than 50% in the last month and is now at its highest level of the year. Analysts are now forecasting that ETH could be trading between $8,000 and $10,000 by year’s end.
The price of BTC has been slumping as Ethereum continues to run higher. Bitcoin is currently up 24% on the year. The month of August is typically a slow period for cryptocurrencies and one of the worst stretches for digital currencies each year.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 25.99% in the last 12 weeks.
