The bitcoin exchange rate fell by 8% in the last 24 hours and is trading below $ 3700

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A large-scale correction of the cryptocurrency market continues. Bitcoin exchange rate drops by almost 8% in the last 24 hours and is trading below $3700. Earlier quotations of the reference cryptocurrency was down at $3500, where he received the support of the buyers, as expected. The total capitalization of the stock market fell for the month at $86 billion, a decrease of 40%.
Nevertheless, a rebound to $4000 provoked the beginning of a new sales, which indicates a fairly weak pulse and can be a prelude to further decline.
Now on the market there comes a time of agonizing waiting: really you reached the bottom, from which bitcoin will turn to growth? The biggest BTC wallets do not move your coins: large capital, for sure, just keep “abreast” without taking any action.
In the crypto-community attributed the current drop in market interest wall Street, but in fact “financial sharks” hardly do anything for the collapse of quotations, as was the understanding that the market itself will move into a phase of purification.
You should pay attention to how to behave like market players from levels near $3500. This is the area of the turn to growth in September 2017, so technical analysis makes careful watch on the dynamics near these levels. Already, the mining in some world regions become unprofitable: mining power derived from the system. In the future this will allow to stabilize the offer, but short term can also be a good signal for the market.
The achievement of the previous turning points can breathe life into the market, stopping sales. If the decline will continue to the levels below 3400, it will be difficult to stop until it reaches $2750 – the next important technical level.
In addition, there is no certainty that BTC “at the bottom” do not spend considerable time, because a significant rebound can occur in a month, and in a few years.
At the time, as most of the market is closely monitoring the change rate of the reference cryptocurrency, behind the scenes there are structural technological changes. The fall of bitcoin prices will lead to disabling of a large number of asik miners in China. According F2pool, to date, disabled Usikov 800,000 BTC. It is often about the older models that began to operate at a loss, however, not difficult to guess that future subsidence rates would lead to discontinuance even upgraded machines.
A similar situation occurs with other cryptocurrencies based on mining. Due to the drawdown rate of the GPU production is also barely worth the support networks of electricity. Blackany mining coins adjusted to the drawdown Hasrat, however, the continued decline of the quotes may compel the mass shutdown devices. In turn, this will lead to higher commissions and, in the case of bulk sales of the coins – to a large pool of unconfirmed transactions.
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Alexander Kuptsikevich,
Analyst
FxPro