Bitcoin has gotten over the next critical level of support.
Buyers’ carelessness was punished as Bitcoin fail to continue the growth. The whole market is down, again.
The week has gotten over the hump, and Bitcoin has gotten over the next critical level of support, giving the bears a unique opportunity to profit from the panic without much effort. We have written about this scenario since Monday, and we hope that loyal readers were able to build a risk management plan based on our observations and recommendations.
The market reacted quite strongly to the new cycle of Bitcoin decline. Capitalization fell to $250 bln, Bitcoin dominance started to grow again and reached 45.2 percent.
More FUD expected if the market continues to fall.
In the media space, the negative news cycle is not very prominent yet. The most recent of unpleasant news- the findings of Swiss researchers that the capitalization of Bitcoin may be greatly overvalued, even now.
This news is just the first harbinger that foreshadows new waves of FUD unless a miracle takes place and a mysterious buyer saves Bitcoin (preferably, right now) from dropping to the bottom. We look upon miracles in the market with a healthy dose of skepticism, so our task is to determine the depth of the possible bottom.
BTC/USD
Technical analysis always goes from the larger picture down to the smaller, so again, we'll begin our evaluation with the enlarged image. Over the last 24 hours, Bitcoin has managed to not only fall one level lower within the long-term descending channel but also break the long-term uptrend, marked in green, for the second time.
At the time of writing, the fall was paused by the upper boundary of an even older ascending channel which originated more than a year ago, on March 25, 2017. The probability of a rebound from this boundary does exist under the current conditions, but it’s not very high. More likely, for a time, the upper register of this channel will become a new haven for the main asset’s price.
At the same time, we see that the decline has not yet triggered a wave of panic sales. Despite the fact that the bears have come out to feed, the overall trading volumes are still falling. They will grow if the price goes down to $6,000, where, on the one hand, the protective stop-losses will activate, and on the other, limit buy orders from those investors who missed out on purchasing the asset in February. The fate of the asset will be determined depending on whether there will be more buyers or sellers.
There is some hope in the fact that the level of $5,670 is not so far below, determined by 0.786 Fibonacci retracement from March 2017 to the all-time high Bitcoin price. Perhaps this is the nearest goal of bulls, but is it the ultimate one… Ephemeral possibilities of growth can only be discussed if there is a rebound from current values and a foothold above $7,000 for Bitcoin today.
The week has gotten over the hump, and Bitcoin has gotten over the next critical level of support, giving the bears a unique opportunity to profit from the panic without much effort. We have written about this scenario since Monday, and we hope that loyal readers were able to build a risk management plan based on our observations and recommendations.
The market reacted quite strongly to the new cycle of Bitcoin decline. Capitalization fell to $250 bln, Bitcoin dominance started to grow again and reached 45.2 percent.
More FUD expected if the market continues to fall.
In the media space, the negative news cycle is not very prominent yet. The most recent of unpleasant news- the findings of Swiss researchers that the capitalization of Bitcoin may be greatly overvalued, even now.
This news is just the first harbinger that foreshadows new waves of FUD unless a miracle takes place and a mysterious buyer saves Bitcoin (preferably, right now) from dropping to the bottom. We look upon miracles in the market with a healthy dose of skepticism, so our task is to determine the depth of the possible bottom.
BTC/USD
Technical analysis always goes from the larger picture down to the smaller, so again, we'll begin our evaluation with the enlarged image. Over the last 24 hours, Bitcoin has managed to not only fall one level lower within the long-term descending channel but also break the long-term uptrend, marked in green, for the second time.
At the time of writing, the fall was paused by the upper boundary of an even older ascending channel which originated more than a year ago, on March 25, 2017. The probability of a rebound from this boundary does exist under the current conditions, but it’s not very high. More likely, for a time, the upper register of this channel will become a new haven for the main asset’s price.
At the same time, we see that the decline has not yet triggered a wave of panic sales. Despite the fact that the bears have come out to feed, the overall trading volumes are still falling. They will grow if the price goes down to $6,000, where, on the one hand, the protective stop-losses will activate, and on the other, limit buy orders from those investors who missed out on purchasing the asset in February. The fate of the asset will be determined depending on whether there will be more buyers or sellers.
There is some hope in the fact that the level of $5,670 is not so far below, determined by 0.786 Fibonacci retracement from March 2017 to the all-time high Bitcoin price. Perhaps this is the nearest goal of bulls, but is it the ultimate one… Ephemeral possibilities of growth can only be discussed if there is a rebound from current values and a foothold above $7,000 for Bitcoin today.
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