Money market analysis: Cong bitcoin prices dip, $5000, the next point will be $4400

Due to the market in the market exceeded two support area shortly after the fall further, bitcoin fell again today. So far, bitcoin fell 15%- fell 25% in 1 weeks:

This decline in support of the market began to show signs of surrender below. Earlier this year, most sellers out of the market, bitcoin lower triangular form successfully sideways for about 9 months.

Last week, after a few support after the test, the bottom finally gave up and through a number of support sent down bitcoin. As the market continues to macro 78% Fibonacci retracement value direction, many early buyers are now looking for investment in the water, so the Bulls almost no relief.

Historically, parabolic fluctuations bitcoin before and fall usually in the 78% retracement near the value of support. In our example, this is roughly equivalent to the range of $4400. However, for the macro trends in the market is worried about the weekly Bollinger band (bbands):

After such a long time after the consolidation, the weekly bbands found himself very nervous. Now, after a 25% decline after a week, bitcoin’s weekly bbands expanded for the first time in more than a year.

If you are not familiar with Bollinger Bands, just as the visualization of the market volatility. The band more tight, more market consolidation. When the band began to expand, the volatility of their action indicates the breakthrough direction increase. Although there are some related Bollinger Bands subtleties fake, but it is usually considered to be a continuation of the trend.

A possible role may be called “head pretend”. The head fake is basically in a given direction on the breakthrough, rapid “fake” market and reverse (bitcoin fakes will produce strong reversed upward).

Because it is in such a macro scope, I will not exclude it – although currently seems unlikely. We are most likely it is a downward continuation. This trend will last long remains to be seen, because the market is still new breakthrough.

Look at the top of the figure 1 and Figure 2, we can see some support and resistance of the region marked by the blue. So far, we have broken the support, suspended point. As mentioned earlier, bitcoin’s next support in the area of $4400. Considering the nature of the surrender, the $4400 area seems likely to welcome because of a new round of buyers and kept in good condition. From there, we will have to re evaluate the market, look at it on the level of support reaction.

abstract

Again the value of bitcoin fell more than 15%. It managed to farming through several layers of support, is now looking at the macro 78% retracement direction. Historically, bitcoin payment will often parabola about 78% in the bottom before reaching back. Is moving down the refuse to be cowed or submit at $4400, but the 78% retracement may bring a new round of buyers. Trade and investment bitcoin and Ethernet digital assets is very speculative, and there are a lot of risk. This analysis is for reference only and should not be regarded as investment advice.

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