Last week, the market kept traders and investors busy: the decline of capitalization was followed by a slight correction, which failed to establish a new support level of the rate of BTC at around $6480. Having lost most of the value after the December rise, the first cryptocurrency risks to set a new “record” of cost below $5755.
According to Bitfinex, today quotes have already overcome the February low ($6000). At the time of publication of the material BTC was trading at $6094, losing during the day about 5% of the cost. Despite decline, bitcoin occupies the fourth position in the ranking of the profitability of CoinMarketCap cryptocurrency over the last 24 hours, the vast majority of assets lost tens of percent values, and the first line is stabilini.
On the other hand, the share of bitcoins on the market increased to 53.7%, the highest figure for the last 8 months. This suggests that investors are cautious, changing your stocks alithinou with a high risk factor in more stable cryptocurrencies, for example, BTC; perhaps also with the further output to the Fiat. And according to the schedule, if market participants would retain this behavior, you can expect large sales of bitcoin, and as a consequence an even greater decline.
Dynamics of prices for 4 hours
Bear market felt pretty confident, despite the fluctuations in the relative strength index (RSI) in the positive direction (as indicated by the highlighted portion of the graph). Moreover, gaining momentum the positive trend was broken in just three days. Major moving averages (50, 100 and 200) are also aimed at lowering.
All the above indicates that quotes for BTC to fall below $5755 (June low) this week.
Dynamics of prices for the week
As follows from the graph, the current wave of decline in the value of bitcoin likely to set a new support level at around $5650. In the short term, support would probably work: capital ratios point to “resale”.
Otherwise, the quotation will be installed at the lower end of the descending tunnel — $5340.
Overall, the 4-hour chart points to the likelihood of short-term trend change and the rise of the price of BTC to $6850—$7000. The indicators, taken this week, show that long-term trend for increase will be possible by overcoming the July peak positions ($8507).