The rate of bitcoin has become hostage to problems of scale
Today, March 9, for the first time in three weeks, the exchange rate of bitcoin fell below $9000 per cryptomonad. On Bitfinex the flagship of the stock market is trading at a price of $8950.
Why is the bitcoin exchange rate falling for several days in a row?
Of course, a logical question arises: why is the rate of bitcoin has been declining for several days in a row? The answer is very simple: the problem of scale of bitcoin remains unresolved in the last three months. Therefore, from the point of view of fundamental analysis, while the bitcoin system can handle the average maximum 300 000 transactions per day, the fair price of bitcoin is estimated to range from $5000 to $7500 per unit. Anything above this range may be considered overbought bitcoin.
If unresolved scaling problem, if the price of bitcoin will be above $7500, then it at any time may fall even in the absence of any significant news. So, do not be surprised that in recent days, the price of cryptocurrency is adjusted.
From the point of view of graphical analysis, quotes BTCUSD continues to move within the downward movement on the daily timeframe:
In fact, for a six-hour timeframe (H6) is clearly visible Double top that has formed in recent days:
Graphic model “Double top”, which on the chart BTCUSD formed at the level of approximately $11м800 for one coin, traditionally considered as reversal pattern. Poetomu the next two to three weeks the price of bitcoin will not be able to rise above the level of $11 800. With high probability the next two to three weeks we will observe a chaotic motion of BTCUSD in a wide range, roughly in the range of $7 500-11 800.
Today reliable buy signal bitcoin I see. To make a purchase of bitcoin I would wait for the price reduction kruptovoti to $7500, i.e., the upper limit of the range of $5000-7500 for one coin, which I think is justified from the point of view of fundamental analysis.