During the previous week, our bitcoin news showed that BTC was gaining momentum and was climbing past $4,000 for the first time in more than five weeks while adding $700 to its value.
However, in less than 30 minutes this Sunday, Bitcoin lost more than $400 and is now trading at $3,780 with a market cap of below $67 billion. Bitcoin reached a daily low of $3,700 which is a lower price point by $500 from the daily high reached the start of the day.
In previous Bitcoin price analysis, the number one cryptocurrency reached a resistance level of $4,200 and while reaching it, BTC got rejected and tried to consolidate but ended up dropping in value in a matter of minutes.
According to the daily charts, we can see that Bitcoin found its support level on the lower trend-line of the ascending channel and the RSI indicator shows a slight turn in bearish territory which means it is re-testing support on the descending long-term trend line.
Going further down the line of the ascending channel could possibly mean a disaster period for the short-term of the price of Bitcoin. Also, it is important to notice that Bitfinex opened a short positions chart since the last price movements came because of it. The short positions have managed to break down the long-term support line.
Another really important thing is the weekend behavior of the price since very often during weekends traders are not trading and is easy to manipulate the prices. This happened yesterday as well and is possibly happening today.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at editor@dcforecasts.com
Discussion about this post