Stubborn bitcoin failed to rise above $7750 and break through the resistance line, therefore, continues to fall. Pressure grows for sale. Along with reducing the cost of bitcoin and other cryptocurrencies.
Experts say that despite expectations, the market trend remains to the downside. Due to the dominance of negative sentiment investors are reluctant to buy bitcoin. Upward movement, in which the first cryptocurrency rose in price by 5.5% should be regarded as a correction</strong>.
The technical picture
If you look at the graph, you can see that bitcoin is back in a downtrend. The nearest support line is at the level of $7300 (the 61.8% Fibo). If the bitcoin will stay above it, it is quite possible activation of the bullish movement and the restoration of prices to $7800 and above. The MACD indicator points to a fall, because the 100-day mA again fell below the 200-day. RSI is approaching oversold line but experts believe that this week the market is unlikely to change, and sales will continue. The market capitalization of the top cryptocurrency fell to $126 billion.
Previously on this topic in the news:
01.06.2018: “Buy bitcoin now while it’s cheap” – the founder of Pantera Capital Management
Dan Morehead, founder of Pantera Capital Management believes that now is the time to buy cryptocurrency. In an interview with CNN, he said that the volatile nature of the digital asset only in the hands of investors, and now to participate in the rally are much cheaper.
“All cryptocurrencies are now very cheap. Prices have declined by about 65% compared with their highs. Now buy and participate in the rally much cheaper,” said Dan Morehead, founder of Pantera Capital Management in an interview with CNN.
Bitcoin, one of the most popular cryptocurrency peaked at $19 500 in December of last year, in February, it cost was less than $6000, today it is trading at $7500. Such volatility can make good money, especially as many experts are predicting a new rally and we are confident that bitcoin is the end of the year will cost a minimum of $20 000. In favor of investors could work and the fact that crypto-currencies are not yet regulated properly.
“Need to invest now so that in 3-5 months, when the background of the regulation of the rate goes up, to strengthen its position.” Morehead recommends buying cryptocurrency as soon as the rate falls below the 230-day moving average. This strategy worked well for the 5th time in 6 years.
Pantera Capital Management – a company founded in the US in 2013, is one of the leaders in the cryptocurrency sphere. In the assets of the company include 25 types of liquid digital assets, including XRP, Ethereum and Bitcoin.
25.05.2018: Will bitcoin grow? – analysis of the course for may 25, and forecasts
Bitcoin managed to stop the fall and push off from the line $7300 is a low for the last 6 weeks, however, until further movement of cryptocurrencies is unclear. The first cryptocurrency was trading at above $7400, but experts do not exclude a further decline in prices.
Brian Kelly, a well-known captainvalor said that a sharp fall is due to several reasons, including the absence in the market of institutional investors, high volatility and regulatory uncertainty. The market will calm down only after people realize that the regulators are doing their job and deter manipulation. Institutional investors do not come into play, because waiting for that cryptocurrencies will be regulated. In the last six months, experts have identified more than 400 fake digital currency.
The technical picture
The currency pair BTC / USD is trading above the support level of $7300. If the bulls can get control over the market, the cost of bitcoin will return to $9000. However, most of the indicators points to further decline: increased sale of cryptocurrency, 100 and 50-day moving average is below the current rate. The first cryptocurrency was trading below the Ichimoku cloud and can not break the channel down. Market capitalization fell to $130 billion.
24.05.2018: $1800 – the real price of bitcoin
Federal reserve Bank of San Francisco published a report on the classification of bitcoin as an asset. Experts believe that the high volatility prevents the first cryptocurrency to gain a foothold in the real world. The value of the asset is also obviously overvalued, the domestic price of bitcoin according to preliminary estimates, is $1800.
The Joost van der Burgt, the report author and financial adviser at the fed confirmed that bitcoin has properties 3 asset classes: may be a commodity, currency or securities:
Hypothetical value of $1800 is far below the current rate. Belt, believes that bitcoin is in a state of bladderand its significance is too overrated.
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:
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.