- Bitcoin cost failed to recover over the $6,750 and $6,800 resistance levels against the US Dollar.
- There is a primary bearish trend line formed with resistance at $6,700 about the hourly chart of the BTC/USD set (data feed from Kraken).
- The pair traded below the $6,500 service, which will be a bearish sign in the near term.
Reduced prices May be a Good Thing It is correct that Bitcoin dropped in value this week falling 4.6% alone on Tuesday and that it is down over 50 percent so far this year but look back a year back to June 2017 to find that it was trading at about $2,000 then. Traveling back another year and it was selling for approximately $750 each. Perhaps what we are seeing is a return to a realistic evaluation of the coin after it experienced an unparalleled 1,400% increase in price more than six months in 2017.
Taking a look at the technical indicators, plenty of people who purchased at $9,000 in April realize that they’re not likely to break even anytime soon, and are instead attempting to get out. Bitcoin has slipped below $7,000 to hover in the mid-six thousand range this week with growing speculation that it may fall under six as investors get panicky and market. Maybe the question to ask is, is this the beginning of a brand new bear market or just a return to normalcy? When the rush was about buying Bitcoin became a get rich fast scheme for many and in turn brought in the scammers which got the attention of their worlds regulatory bodies who, without actually understanding how to classify electronic currency, have created an environment of uncertainty and dread around them. For people who bought in late 2017 when Bitcoin was at record highs, the recent cost marks feel like massive drops in value but step back a little to check at Bitcoin over a two year period, and the term bear market does not apply.
Hourly RSI (Relative Strength Index) — The RSI is recovering high in the 25 level. Talking about the reasons for the recent dip, Kyle Samani, managing partner at Austin, Texas-based crypto hedge fund Multicoin Capital told MSN Money “I don’t believe that is driven on any Specific news, just the overall downtrend following the 2017 conduct,” before adding; Maybe it’s Not a Bear Market.
Bitcoin Price Analysis:
The six-month meteoric rise of cryptocurrency prices and fame from July 2017 through to January 2018 left a lot of people wealthy and brought a great deal of focus on the goal, but it might also have caused a great deal of harm to the long-term rise and maturation of the technology. Hourly MACD — The MACD for BTC/USD is slowly moving back in the bullish zone. This exploding bubble, bear market or return to reasonable valuations may be useful for the space and the near future of this tech in the long term. Without the possibility of overnight riches, the natives and pitchmen should fall away, and the shitcoins disappear, regulatory agencies may have a breath and eventually present some clarity, and those who genuinely believe in crypto is going to be left to keep on developing the technologies.
Significant Support Amount:
$6,400 A new monthly low was formed close to $6,450 before the price started consolidating losses. It is currently trading in a tiny range around the 23.6% Fib retracement level of the final decline from the $6,905 high to $6,457 low. On the upside, there are many resistance levels around the 6,600 and $6,700 levels. There’s also an integral bearish tendency line-shaped with opposition at $6,700 about the hourly chart of this BTC/USD pair. Moreover, the 50% Fib retracement level of the final decline from the $6,905 high to $6,457 low is also a significant resistance. There was a minor upside correction from the 6,600 support area in bitcoin cost against the US Dollar. The BTC/USD pair traded near to the $6,800 and $6,900 resistance amounts where vendors seemed. As a result, there was a downside response, furthermore, the cost declined below $6,600.