Opinion: bitcoin may soon update the lows of this year


Losing about two-thirds from their December values, the bitcoin price to break the support level at $5755, I am sure CoinDesk analyst Omkar Godbole.

The attempt of the bulls to gain a foothold in the Monday above $6480 proved futile. This gave fresh strength to the bears and as a result, the first cryptocurrency fell below the psychological level of $6,000 for the respective February low. After that, the price dropped closer to the June lows, referring to today, August 14, $5859.

At the time of writing, the weighted average rate of BTC is $6155. In General, in recent days the price of “digital gold” has decreased by approximately 4.5%. However, despite the significant losses among the top hundred rankings CoinMarketCap bitcoin price more or less firmly resists pressure from the bears

Data: CoinMarketCap; price dynamics sorted from “best” to cryptocurrencies “worst” in the last 24 hours

Other cryptocurrencies the first hundred suffer serious losses — the vast majority of them in recent days dipped in price by more than 10%. About investor confidence in the relative reliability of bitcoin indicates the index of dominance at 54.1%.

The four-hour chart

The graph below shows that the buyers failed to push the price above the downward trend line, in spite of the bullish divergence on the RSI.

Faced with strong resistance and fell back below $6000. The market reigned bearish sentiment, as also evidenced by the downward slope of the “heavy” moving averages with periods of 50 and 100.

According to the analyst, BTC can this week to update the low prices having fallen below $5755.

Weekly chart

On the higher timeframe we can see that price is close to support line passing through the mark of $5650.

On the other hand, the lower line of the price channel can resist, because after the price drop more than 40% in three weeks, bitcoin is in a deep oversold.

If the bears manage to break the level of $5650 in short term support would be around $5340.

So the market situation has changed dramatically, the bulls first need to break on a specified four-hour chart downward trend line and consolidate in the range of $6850–$7000. The next target should be the $8507, corresponding to the July highs.

ForkLog previously reported that the market capitalization of cryptocurrencies shrunk to values of the beginning of November last year.

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