In the light of recent events in the market, when leading currencies rushed down and market capitalization reached 114 billion, many investors were not ready for such market conditions.
With a brief analysis of the main cryptocurrency, it is worth noting that the price has not yet stabilized and it is not worth making any definite conclusions regarding its future values. At the moment, the Bitcoin rate against the dollar is 3.608 according to information from the CoinMarketCap website.
When analyzing the daily chart, it is clear that now the price is between two important price levels. The support line is the level of 3200 3250, which is the price level of September 2017. The main nearest resistance price can meet at around 4,300 dollars for 1 Bitcoin. It is important that now the price is in the middle of the downward channel (marked in yellow), and until it breaks through the upper resistance line, it’s too early to talk about the price increase. According to our expectations, in the near future the price will linger around the mark of 3600 before gaining strength to test new price levels.
Speaking of fundamental analysis, there is no unambiguity for Bitcoin. Many investors were taken aback by such a sharp decline. The trader was taken as the basis for the fact that an important support for bitcoin at the level of 6000 6500 dollars was the break-even level of mining. But as we have already analyzed in one of our previous articles, many large mining companies, at most from China, managed to reduce this threshold to 3,500 due to cheap electricity and equipment.
In addition, the market remains vulnerable to manipulation and large companies are still able to influence short-term movements. There is a possibility that in the wake of the excitement, the big players will try to lower the price even more in order to buy large volumes more profitably.