The weekend began with the bitcoin price on a large order. From Saturday to Monday night, the price is a whopping $ 1,500 (1.318 euro) will fail. Such a decrease could not be divorced from the negative developments around the world. The price of oil is 30 percent, and the stock market to plummet.
Can bitcoin survive in these times of uncertainty? And what do we have in the course of the following week?
Bitcoin holds preliminary position
Bitcoin was designed during the financial crisis of 2008, as a response to the failure of the policies of the european union. But bitcoin started in 2009, the firm, the market, and when the worst is behind us and markets have begun to recover. It is, therefore, very interesting to see how bitcoin performs in the system is going to work.
The chart below compares the price of bitcoin (in green), and gold (yellow), Dow Jones (red), oil (blue).
Up to now, the does bitcoin still in a good position. Compared to the beginning of the year, there is even talk of a small profit of 7.7 per cent. However, gold is a 10-percent increase is slightly better. That’s not bad, according to some investors to gold as a safe haven in times of uncertainty. Bitcoin must do to prove it to you.
The Dow Jones suffered big losses at the start of this year, the stock market index by almost 17 per cent in the negative. This is mainly due to the uncertainty surrounding the corona virus.
The price of oil Monday, with a 30 per cent decreased in comparison with the beginning of the year, even for a moment, with 54 percent of the time. Which is, incidentally, independent of the corona virus, but it does have to do with the prijsoorlog between the Russian federation and the kingdom of Saudi Arabia.
Bitcoin is on the main zone, the soil be found?
Back to the bitcoin, the exchange rate is moving around 7.900, the $ 6.950 million). This corresponds to the green region in the graph, and this is an important area. In the summer of last year, it was a strong support, and in november and december, just a resistor.
If bitcoin is here to the bottom, this is a good starting point for a rise. Just like in January, when the price of the green belt, it broke.
Bitcoin exchange rate can have a hole to fill
And it is a good thing, who know what bitcoin is once again CME Group is the hole for the filling. A large part of the action this week was off over the weekend.
While the bitcoin price on exchanges, such as Bitstamp and Binance go (rechtergrafiek), it is on the derivative exchanges established such as the CME Group, a large aperture (left graph). The hole is from the top to the bottom, for about 900 dollars (790 euros).
In many cases, this gap is quickly filled in. The price should be in the opening of the CME Group to increase the value of the gap to go up. This means that a single bitcoin could continue to rise for a minimum of 8.280, the $ 7.300 euro)
But we have to keep in mind that it is not normal times. It is not a guarantee that it is going to play out, but it will certainly be interesting to keep an eye on.
What do we expect the price of bitcoin?
It is very difficult to make a decision about the bitcoin price, these are heady times. But still, we try to be two realistic scenarios described. Stay for the next few days, the bitcoin price watch.
It may sound contradictory, but the bitcoin exchange rate may be in the next few days will rise. First of all, there is a gap in the direction of the CME Group, which needs to be filled in. On the other hand, it is the Relative Strength Indicator (RSI) at this time is low. That is the indicator you see at the bottom of that page.
As the RSI indicates momentum of the course. The price has been over the last few days, so hard to fell that recover is possible. In this case, the resistance to 8.300, the $ 7.300 million), and the green band on the chart.
If we only rely on technical analysis, this increase is more likely. But it’s been a crazy day, and all the negative aspects seem to be also having an impact on the bitcoin price. Due to all the uncertainty in the exchange rate, therefore, will also continue to drop. Key support is now at 6.600 usd (5.800 euro). This corresponds to the bottom of the first of december.