Bitcoin exchange rate in two days lost 16%, the expert said that further
Wednesday, November 14, cripture was a black day. Just before “black Friday” the exchange rate of bitcoin fell against the dollar by 8.3% on Thursday – 2.92% (on closing prices). On the Bitfinex team for two days, its loss was 16%. Three days the players tried to find a foothold – a fair price for forming reveals. After consolidation at the level of $5660 and unsuccessful attempts to return to around $6000, the rate dropped to $5200 (-7,5%).
I think that the market collapse provoked a fork of Bitcoin Cash. Then the fall accelerated when he was punched 3-month support at $6325 (B-B). Then prices fell by inertia on the performance of protective stops, orders and margin call (forced closing of short positions due to the lack of margin). After a long consolidation the sellers demolished two key support at $6009 $5835 (trend line TR).
Bearish on bitcoin trends always unfolded through a sharp rebound. Such bounces are not observed. Though buyers are buying depreciating coins, they remain weak. Christmas here (it’s a free transcription of the English expressions “to the Moon”, which means “the moon”, and in the world of cryptocurrency complies with the expectations the price increase of bitcoin) was canceled.
Price was important price levels. If the pressure will increase, it is unlikely that the price will remain trading above the $5000. On the Bitfinex team nearest the target zone is a zone $4960 – $4372. The interim target is at $5023 for bitcoin.
There are two factors that make it difficult to return to the market for investors: the manipulators and the lack of regulation of cryptocurrency market. I believe that soon this issue will be resolved. The market will not die but will restart and be better. The volatility of the coins will decrease. Will thrive margin trading as in the Forex market. I do not exclude that the fall in the price of the coin there are the medium-term plan by Central banks to discourage individuals to work with the cryptocurrency, which is a threat to Fiat currency.
The opening of the cryptocurrency exchanges BAKKT and permission bitcoin ETF will not help to restore prices and cause a rally. Raising prices can only be the regulator. Expect from him the results of the investigation on four exchanges: Bitstamp, Coinbase, Kraken and itBit. They are suspected in price manipulation in order to influence the final cost of the futures on bitcoin at the exchange CME.
Of the last positive news we can note the statements by the head of the International monetary Fund (IMF) Christine Lagarde. IMF recommends Central banks to consider issuing its own digital currency, to offset the decline in the use of cash. With regard to the institutional players, they will not go to the spot market. They specifically create futures and options.
Breakdown of $5000 to me would mean that the regulators have achieved their goal to reduce the interest in the cryptocurrency. After the collapse of the market will for a very long time to recover. So, the target area $4960 – $4372. A drop below $4 000 not yet considered. A sharp bounce up to $600-$1000 would point to the renewed interest of the buyers.