Bitcoin falls to 7 per cent in a single day, what’s next?

The price of a single bitcoin in a day, with a seven per cent decline. There are several fundamental reasons for this, such as the sale of bitcoin by miners. For example, the link between bitcoin and the stock market. However, in this article we will look purely at the figures. The exchange rate moves in a way that the two months are on its side. That’s going to put an end to it?

Contents

Bitcoin is moving, it still sideways

There is a short answer to this question is no. The price of bitcoin moves in a wide range, between 8.700 usd (7.745 euros) and $ 10,000 (8.903 million). Of these areas, we give in the graph below, the colored bars. You are looking below at the chart of bitcoin, denominated in us dollars.

Even though the market price is between this range, substantial moves, there is bitcoin is so there is a clear trend. A breakout above $ 10,000 or below 8.700 bucks will be more clarity about the direction of the stock price in the long run. But for the moment it is moving bitcoin is still in the same area.

The way forward in the triangle is broken

Yesterday, we reported that the price is still within an ascending triangle and it was moving. It looks like the price is now never to be broken. The objective of a no-escape is at around 8,000, the $ 7.122 million). You are watching here, in order to get the chart, but zoomed in.

The Hammer gives the potential of soil to

We will look at the same chart, we can see that bitcoin is possible, that a bottom has been reached. The last candle is a “hammer”, that is, a formation which usually signals the end of a downward trend.

This requires some explanation. A candle consists of two parts, the body and the wick. The body is a painted surface, as a result, the open and the close price of a period. The lines indicate the extreme values, both high and low closing prices for the period.

A starter kit can get the body on the top and a long wick below it. Actually, it means that I have the following:

The exchange rate is today significantly dropped, to the bottom of the wick.
But, after that, is a rise in the price of hard, almost to the openkoers of the day.

A hammer can be a sign of the end of a downward trend, and the change-over to an upward trend.

The Relative Strength Indicator doesn’t say a lot

However, the Relative Strength Indicator shows that the share price is still in a downward trend. The RSI is an index between 0 and 100 that is to build on the momentum of the price chart. The price has increased compared to the previous day? Going up the grade. Conversely, declines in the indicator. The actual calculation is a bit more complicated, but this at least is the crux of it. The RSI is a reflection of the market price of bitcoin, but with a consumer price index.

The higher the number, the better the momentum is. If the indicator is in the vicinity of the purple band, then you may be feeling upset. At the top is the price to overbought, and the price is in a short period of time, to be hard to increase, and it will soon be fall. This was on the 7th of may, for example, is the case. You can see that the RSI is up at the top of the beam. The price is rising too fast, and that’s why there is a decline.

At this time, the RSI is in a rising trend, and the momentum is negative. The share price still has some room to go down because the RSI is now up to 45. The bottom of the purple bar, it is still relatively far away. f10Het may be the case that the exchange rate is still more decreased.

What’s the exchange rate for the next few weeks?

As of the beginning of the analysis, read the levels of $ 10,000, and 8.700 dollar is important to keep in mind. But what is beyond the regions of the world? You can see in the chart below.

Bullish
To succeed, the bitcoin is finally to $ 10,000 (8.905 euros) to $ 10,500 (9.352 eur) to break it, then it is no less than 11,000 dollars for the next resistance. That is, it is in the top green bar of the graph. This was in the summer of 2019 and is also one of the important resistance is found.

Bearish
But the drops in bitcoin by 8.700 usd (7.745 euros)? It is 7.700 u.s. dollars (6.857 euros) to support to the area. This was back in October of last year, with a significant level of support, and in november and december, a strong resistance.

Cryptocurrency Market