Bitcoin: Why the experts do not consider the sudden collapse of the market
The main event of the last day in the market of cryptocurrency was bitcoin. Reference the cryptocurrency has broken the threshold level of support at $6,500, after which, according to technical analysis, opens the way to further decline. However, bitcoin fell to $6,100, he started to be adjusted upwards, reaching levels above $6,500 by Thursday morning.
The failure of the $6500 was a serious event and increased impulse sales, as they were taken the important level which has not previously withstood one attack. Now, when the market is trying to recover this area can result in not less serious resistance. The relative strength index (RSI) for BTC indicates oversold, while on level 28.
Altcoins again showed complete dependence on the reference cryptocurrency, almost completely duplicating the dynamics of the Bitcoin exchange rate. The news about the imminent placement of Ethereum Classic on Coinbase caused 12 June up 27% from $12.70 to $16.15 in just half an hour, however a General market decline could not touch ETC, and the coin is currently trading around $13.50.
The basis for the current correction formed a bitcoin a number of factors, in particular:
• Lack of trading volume on the cryptocurrency market in the last months.
• Loss of interest and frustration of retail investors in the prospects for the sector.
• The unique position of regulators in the direction of work out rigid rules that will have a major capital.
In the medium term the market can expect new shocks, which, however, will create more promising opportunities for market entry of big capital.