The fall of bitcoin will continue? – analysis of the course for the 20th of June and forecasts

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Bitcoin only started to recover, but the news about the hacking of exchanges Bithumb thwarted his attempts. The first cryptocurrency again go down. Market capitalization is $113 billion, and experts do not rule out further decline.

One of the largest kryptomere South Korea experienced. Not yet disclosed any cryptocurrencies had been stolen, but the market reacted in a predictable and went down. Bitcoin continues to trade in a descending channel. If the decline continues, the price may return to the bottom of the channel ($6000 is a crucial level), bypassing basic support levels.

The technical picture

Bitcoin has rebounded from the low of $6557, but he remains vulnerable for further losses. Currently, the first cryptocurrency dipped slightly in price. As support levels are the 100 – and 200-day moving average ($6560 $6550 , respectively). RSI indicates a slight overbought, but bulls still have the opportunity to seize control of the market. The Ichimoku indicator continues to point to a sideways trend – USD/BTC is trading in the cloud, but a break of the $6500 would signal the continuation of a persistent bearish trend. Only the steady movement to a mark of$7000 and above will lead to the restoration of bitcoin. While consumer activity is not enough, investors took expectant position.

Previously on this topic in the news:

19.06.2018: Will bitcoin fall? – analysis of rate for June 19, and forecasts

On Monday, bitcoin has managed to overcome several important technical levels and to reach the level of $6700. Growth momentum gradually dies away, and the growth potential is limited by resistance at$6800 or $6900.

The market capitalization of the top crypto-currencies is $115 billion. Experts expect that the price of cryptocurrencies will be affected by the report of the Bank for international settlements, which said that bitcoin will break the Internet because of the increasing storage requirements and transaction volumes. However, this pessimistic Outlook has not prevented Bitcoin per day to grow by 4%.

The technical picture

At the time of the exchange charts currency pair BTC / USD is trading above all moving averages. The 200-day is situated at the level of $6560 and is the first line of support. Experts predict that the recovery will continue as long as bitcoin is above this level. If the line is broken, start another pullback to $6500to $6300. Sustainable bullish movement higher will lead bitcoin to the $7000 mark. RSI indicates a slight overbought and signals the decline of bullish pressure. The Ichimoku indicator suggests a continuation of the downtrend, only closing quotations above $6900 will allow the bulls to get the upper hand in the market.

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15.06.2018: Why falling bitcoin? – analysis of Tom Lee

Tom Lee, chief analyst and founder of Fundstrat announced its version why bitcoin is falling. Last month, the cryptocurrency has lost almost 30% of the cost, and for the current year – almost 65%.

In his report, Tom Lee explained that the price decline of bitcoin is the result of the expiry of futures contracts on the futures. In December 2017 on the stock exchanges and the CME the CBOE began offering futures contracts for bitcoin. After analyzing the situation on the market, you have come to the conclusion that each time, shortly before the expiration date of the futures began the collapse of the bitcoin. The founder of Fundstrat commented: “In connection with the expiration of futures the price of bitcoin changes dramatically. We have collected some data and it is very similar to the truth. 10 days before the expiration of the contracts the first cryptocurrency falling by about 18%, and usually returns to the same position for 6-7 days“. Lee explained that the holders can sell large stocks of bitcoin average price, as the contracts near completion, flooding the market.

Lee also noted that this year decreased the number of investments in the cryptocurrency. The taxation of digital asset tax, tighter regulation, allegations of price manipulation in the market – these factors significantly affect the trading volume. If If was not mistaken in his forecast, for 6-7 days, bitcoins should increase again. Previously, he predicted that before the end of the year the digital asset will be worth $25 000.

Trade Commission commodity futures U.S. (CFTC) has started research activities 4 crypto-currency exchanges: Bitstamp, Coinbase, and Kraken itBit – they provide data for CME Group. CFTC investigates, involved platform to the manipulation of prices in the cryptocurrency market after the launch of futures.

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21.05.2018: 5 factors that affect the price of bitcoin

The price of bitcoin has always had tremendous volatility. 2 months of 2017, the rate has increased by 223%, and just as easily fell by 60% in January-February 2018. What factors provoke the UPS and downs of the digital currency, and affect its value?

5 factors affecting the price of bitcoin:

  • Supply and demand. Like any currency, bitcoin is affected by supply and demand. Mining bitcoins is similar to gold mining. Gold supplies are limited: to bring it to market, people need to get it. Also with hashing: the more people want to get bitcoin (and at the moment produced 17 million coins) – the higher its price.
  • Media. Fiat currency is less influenced by newsthan cryptocurrency. Positive news contributes to higher prices, the negative can derail the course. Stores that accept cryptocurrency as payment, companies that adopt the bitcoin system known investors who believe in digital assets – such news is going to benefit and enhance the credibility of virtual money. For example, the operator BitPay recently announced that it will be possible to pay taxes in Bitcoin.
  • The policy changes. Bitcoin is not controlled by the government and financial institutions – that’s why people paid attention to it. However, an official ban of the use of cryptocurrency (Pakistan, Kazakhstan, China, India and other countries) contribute to the depreciation.
  • State regulation. Decision regulating the use of digital currency can cause major fluctuations. For example, when Japan has recognized bitcoin as legal tender, the price of the asset began to grow rapidly. While the official means of payment bitcoin recognized a few, mostly the government equates it to the property.
  • Change the rules of the system. We will focus on hardforce – branches from the already existing cryptocurrency. There is a new currency, with similar characteristics, but working by different rules. Typically, the hard forks , the demand for bitcoin increases.
  • Experts believe that due to the fact that a reduced amount of bitcoins will continue to grow demand for them. Many predict that by the end of 2018, the first cryptocurrency would cost $20 000.

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