The price of bitcoin after a long systematic downwards decline over the past day has fallen sharply by $ 700 (-8%). The fall is due to the negative fundamental background and the weakness of buyers who have not stepped up in the support area of $ 8,200 - $ 8,400.
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The fundamental causes of the fall:
- “The surrender of miners” on the eve of halving: bitcoin miners are actively draining their income;
- In China, there is again a kind of “cooling” of sentiment regarding cryptocurrencies;
- Throwing negative news about a police raid on the Binance cryptocurrency exchange office in Shanghai.
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Technically:
The price amid weak buyers and a negative fundamental background came close to a strong support level in the area of $ 7,400 - $ 7,600 again, which, in its turn, coincides with the Fibonacci level of 0.618 that locally strengthens this area and increases the likelihood of a price rebound, which may provoke further upward price movement, thereby forming the figure of the technical analysis named the "double bottom". The RSI indicator began to enter the oversold zone, which also plays into the hands of buyers, but does not guarantee a 100% increase in current prices.
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The $ 7,400 - $ 7,600 zone is currently the key to the further movement of bitcoin price, and the cryptocurrency market as a whole, as if they continue to aggressively push bitcoin down, all other altcoins will follow. If sellers manage to push this level and gain a foothold under it, we`ll have every chance to continue the downtrend, down to the area of $ 5,400 - $ 6,000, where we expect the next zone of potential buyers, which also acts as a zone of accumulation of stop orders for traders trading on increase, and these orders are potential fuel for the future global rise in the price of bitcoin.
.
The fundamental causes of the fall:
- “The surrender of miners” on the eve of halving: bitcoin miners are actively draining their income;
- In China, there is again a kind of “cooling” of sentiment regarding cryptocurrencies;
- Throwing negative news about a police raid on the Binance cryptocurrency exchange office in Shanghai.
.
Technically:
The price amid weak buyers and a negative fundamental background came close to a strong support level in the area of $ 7,400 - $ 7,600 again, which, in its turn, coincides with the Fibonacci level of 0.618 that locally strengthens this area and increases the likelihood of a price rebound, which may provoke further upward price movement, thereby forming the figure of the technical analysis named the "double bottom". The RSI indicator began to enter the oversold zone, which also plays into the hands of buyers, but does not guarantee a 100% increase in current prices.
.
The $ 7,400 - $ 7,600 zone is currently the key to the further movement of bitcoin price, and the cryptocurrency market as a whole, as if they continue to aggressively push bitcoin down, all other altcoins will follow. If sellers manage to push this level and gain a foothold under it, we`ll have every chance to continue the downtrend, down to the area of $ 5,400 - $ 6,000, where we expect the next zone of potential buyers, which also acts as a zone of accumulation of stop orders for traders trading on increase, and these orders are potential fuel for the future global rise in the price of bitcoin.