The bitcoin exchange rate suddenly fell by 13%, called the main reason
Inability steadily to overcome the threshold of $8,000 resulted in a fall in the exchange rate of bitcoin at $1400, and it happened for only a few hours. Apparently, some players decided to get out of bitcoin, arguing that the rally has exhausted itself. But – of course – there were those who entered the market to celebrate, and went under a funeral March. Now the rate of BTC is trading for about $7300, partially recovering after falling to $6600 and showing the irony of the volatility of the market.
Analysts say that the decline was caused by large, several thousand bitcoins, sell order on Bitstamp. It also became the trigger for the correction in the prices of basic altcoins, most of which are still losing more than 10% to the levels the previous day.
From the technical analysis, bitcoin price ran into resistance near $8200, which in July last year, also stopped the growth of prices. RSI on the daily charts, the divergence notes: new highs in the last month have not been confirmed by the peak values of this indicator and, therefore, accept them on faith for now. Even more alarming is that the RSI fell sharply below 70, probably marking the beginning of a more prolonged correction.
Interestingly, the sale occurred just the next day after the 50-day average crossed above the 200-day from below upwards. In technical analysis this is considered a strong buy signal. If the correction does not receive its development below 6,000, the market may well new buyers who will want to join in on the pullback.
On the backdrop of increased volatility, the US SEC has deferred consideration of the application to launch a bitcoin ETF from the company Bitwise. So long the longing anticipation can enhance market reaction in case of a positive decision at some point in the future.
On the upcoming weekend may determine the future direction of price movements of bitcoin and the entire cryptocurrency market as a whole. Yet more indication that the rollback rate was short-term, and the General trend in growth will remain, at least until the end of summer.