The collapse of the stock market continues: cryptocurrency for a week lost another 21%
After a brief respite last week the fall in the exchange rate of bitcoin has increased to $3200 (Bitmex). Rebound 30% to 4423, failed to bring to market new buyers. As of 16:14 GMT bitcoin is trading around $3498. According to CoinMarketCap, the market capitalization of bitcoin is $61,2 billion (17 billion less than the previous week), and the index of dominance is 54.8%. Total market capitalization decreased by $26.8 billion to $138.4 billion
The collapse of the cryptocurrency market began on Monday (3 December). During the week the price fell by 21%. The fall consisted of six bearish impulses, each with a range from $290 to $360. The levels stayed the price: 3889, 3730, 3620, 3520, 3282 and 3200. Customers tried to stop the fall three times: 3730, 3620 and 3200.
The technical picture for the value of bitcoin remains bearish. New week, key support will be the area 2758-2900 (Bitfinex) and 2950-3050 (Bitmex). Due to updates maximum of 3630 (Bitfinex), the scales began to lean toward buyers.
Buyers are still very weak. Once the sellers go on the offensive, they quickly begin to close the long position and the price is very quickly returned to their former positions.
The latest COT report (Commitments of Traders), the Commission on trade commodity futures (CFTC) for the week ended last Tuesday (4 December), reflected on the Chicago stock exchange CME the increased interest of large speculators (NON-COMMERCIAL) purchases and sales of bitcoin. Short positions increased by 174, to 2,750 contracts long positions – 210, to 2677 contacts. The net short position decreased by 109 to 73 contracts.
Small speculators in the last week bought and sold, of approximately two to one. They do not have a significant impact on the futures market, so you should not focus on them. Hedgers (COMMERCIAL) have increased short positions in 77 contracts to 251. Net position in the market by 0.22 thousand contracts.
The week-long period, the situation for buyers is very worrying. Risks remain to sink to zone 1850-2050 (Bitmex). Sellers able to send the price to these levels as buyers will not be able to cope with the avalanche of market sales.