Bitcoin (BTC) cryptocurrency rate fell below the 100 hour SMA. Therefore, a downtrend should appear in the market, as a result of which the coin will fall in price to $ 12,500.
Last week, the BTC rate broke the resistance barriers of $ 13,500 and $ 13,800, consolidated above the 100-hour average, and reached $ 14,076 (Bitstamp data). However, on Monday, the asset fell sharply by 6% – to $ 13,200. On Tuesday, after a slight correction, the price of the coin broke through 23.6% Fib fixed during the pump from $ 13,277 to $ 14,076. Therefore, during the next session, BTC/USD will drop at least up to $ 13,277.
As long as the Bitcoin rate fluctuates below the SMA 100, there is a high probability of an acceleration of the downward movement. The nearest serious support barrier is located at $ 13,000. If the bears take this barrier, the asset price will go down to $ 12,500 – the line of the bullish trend that started in October runs along this mark. The uptrend line, which emerged in March, acts as the main support barrier and is now at $ 11,400.
Last week BTC rate reached the level recorded in December 2017, but the level of volatility is less by 56%. The growth of the dynamics of the change in the exchange rate of the asset should provoke a powerful dump or pump. The main question is the direction of the coin’s price movement.
According to an employee of BitWise Asset Management, Matthew Hougan, the value of BTC will increase due to an increase in the volume of institutional investments amid a pandemic and fears about inflation. Technical indicators also speak in favor of a bull run. In particular, the value of Bitcoin hovers above the Kijun-sen line of Ichimoku cloud for 200 weeks. The current situation resembles the 2017 market trend ahead of the pump. Therefore, many analysts assume that the BTC rate will exceed $ 20,000 as a result of a bull run.
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