Bitcoin on Tuesday, November 20, continues to fall and is trading at USD 4501,1, according to a leading analyst RoboForex Dmitry Gurkovsky.
In the current volatile dynamics of Bitcoin the most relevant is the consideration of the daily timeframe. After the break the last support line quotes has updated the lows of developing a longer-term downtrend. As the purpose of the downtrend should consider maintaining current long-term channel, in particular the level of $3000.
In addition, under the long-term descending movement it is necessary to consider the internal medium-term corridor of decline. Considering 4-hour timeframe Bitcoin, you can see that the quotes are approaching the support line of the medium of the corridor, namely the level of $4000. Assuming that after his achievements will be rolled back, as targets will be the levels 23,6% ($4605), 38,2% ($4972) and 50.0% ($5275) on a scale Fibonacci.
Sale Bitcoin started 2 weeks ago and in that time the cryptocurrency fell by almost 30%. Simultaneously, the market capitalization of the virtual currency decreased by 31% and now stands at just over 150 billion USD. In January of this year, recall, the figure was 830 billion USD. It’s a very hard fall.
It is believed that for such a powerful reduction in the price of cryptocurrencies are global ETF-funds. A number of observers believed that large investment funds interested in purchasing a large amount of Bitcoin in order to use it as a base of support. For the cost of the virtual currency artificially undervalued. If this theory is correct, then very soon Bitcoin will change a direction on opposite.
There are fundamental reasons for the current market situation. It must be noted that the beginning of “failure” in Bitcoin and popular altonah coincided with hardforum Bitcoin Cash, which was divided into 2 coins. It could also contribute to higher market volatility, which is so much covered Bitcoin.
In addition, the time stopped the work on the exchange Binance. Despite occasional problems, this area is in demand among investors. While on Binance to carry out preventive work, in other markets there was a sharp and unreasonable fluctuations of cryptocurrencies.
It is also worth noting the human factor. Cryptocurrency market is now returning to the state a year ago, when the reasons for the volatility were daily. During the period of relative calm in the summer and autumn of the current year, the cryptocurrency market has become less interesting to investors. Now, when it again began “pitching”, he again becomes attractive for bidders, because the price of the same Bitcoin is very interesting for investors.
Forecasts financial markets are private opinion of their authors. The current analysis is not a guide to trade. RoboForex is not responsible for the results that can occur when using trade recommendations submitted reviews.