Bitcoin has suspended drop within the formation of the second bottom
Stock Markets Group – Experts say that previous attempts of bitcoin growth observed in the market previously, was a technical break before the biggest drop. As we wrote earlier, any figure appearing in the financial markets, including the cryptocurrency market have to find a logical conclusion.
As you know, because of the strong emotional influence on Bitcoin, and panic, technical analysis in its classical form is not working in the cryptocurrency market.
However, this does not prevent the cost of the most popular cryptocurrencies to complete the formations and to identify key levels of support and resistance, which you can navigate.
Today digital coin fell not only under the pressure of negative news that began the February drop has developed into the formation of figures “double bottom”.
On the chart, BTC/USD is clearly seen that the first attempt to stop was in February. When the price has reached the minimum values, while losing more than 50% of its initial value.
However, the growth has stayed between $11 000 and $12 000, and then another wave of decline of bitcoin is the beginning of the formation of the second bottom.
Many analysts have noted that to confirm this figure, the asset will need a few days, and if the formation of the right side is successful, then Bitcoin can show multiple growth.
Among the news that helped digital assets cryptocurrency market go down, was locked ads ICO and cryptocurrency in Twitter and Linkedin.
Also, two major Japanese stock exchanges Mr. Exchange and the Tokyo GateWay refused to permit the regulator to work in the country, and OKEx stopped handling transactions with futures for bitcoin.
Technically, bitcoin is in a downward trading channel and as long as the quotes will not complete the formation of market figures, change in the dynamics of Bitcoin will not.
Experts recommend not to panic and stay in long position for those who purchased the cryptocurrency in the region of $6 000, because there is a high probability of a reversal of a digital asset growth.
By 13:25 Moscow time., the exchange rate of bitcoin is at $7 087, adding the price more than 5%. Market capitalization compared to April 1, rose by $ 7 billion and is $120 $ 160 billion.
Market analyst cryptocurrency
Stock Markets Group™