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#Bitcoin Price Analysis

Cryptocurrency Market Facing huge losses. Is it the right time to invest?

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It is always observed that, after a downfall, the cryptocurrency market mostly experiences a correction and regains stability.

Understanding the reasons for the Bitcoin downfall and deciphering the suitability of the investment.

Introduction

Investing in the cryptocurrency market is not any less than, gambling on a higher scale, just that the process is completely online and real-time in nature. It never closes as the cryptocurrency market runs 24/7 throughout the year which makes it highly suitable for the day traders to analyze the investors to track the cryptocurrencies in order to make some profits from them. Trading with cryptocurrencies is an art which can be mastered with consistent practice. It is observed that many of them become millionaires by investing in the cryptocurrencies while on the other hand it is also observed that many enthusiasts have lost their previous savings by investing in the crypto. Therefore it is highly speculative and the newcomers are advised to make an extensive research about the cryptocurrency they are opting to invest in it.

 

The Loop

Is observed carefully the cryptocurrencies undergo a constant cycle. It is observed that initially, Bitcoin leads the bullish market which is followed by the top altcoins which are in turn followed by the other lesser prominent Altcoins. Then huge corrections begin and a new floor price is set for Bitcoin and all the other altcoins as well, then there is no activity in the Crypto space for months together, until and unless another new big cryptocurrency hike is observed. Then the whole process repeats itself.

 

How are stock markets better than cryptocurrencies?

It is estimated that investing in the cryptocurrencies during the market fall, is the best time, as the currencies would regain the Bullish Trend. But there is a lot of difference in investing in a stock market and cryptocurrency because in stock markets the prices not only depend on the market forces of demand and supply but also the successful adoption of their product or service but in case of crypto market solely depend on the demand and supply. As the cryptocurrencies are not backed by any financial asset it is recommended on generalized terms to stay away from it.  

 

The actual reason for the market downfall

On 8th August, the prices steeply fell and the precise reason is pointed towards the decision taken by SEC to postpone the decision regarding implementation of the Bitcoin ETF. The prices experienced almost a 6% fall within a span of 24 hours itself to attend $6300. The proposal to the SEC was the third one put forth by the investment firm, VanEck where they had rejects it’s proposals twice, before. This time they willing to consider the issue and hence probably are taking some time to decide on the matter. In simpler words, they are making sure that this would have any adverse side effects on this highly volatile crypto market.  

Price specifications

The Bitcoin prices have fallen from an intraday of  $7600 to almost $6700 approximately. However, this 6% downfall is nothing when compared to a 30 % downfall which the cryptocurrency market had experienced in April 2017, when Cameron and Tyler Winklevoss had proposed for the Bitcoin ETFs and it was rejected by the SEC. In a nutshell, this decision has even worsened the market conditions.

 

Is a good time to invest?

It is always observed that, after a downfall, the cryptocurrency market mostly experiences a correction and regains stability. The trend can also be applied here and hence this can be a great opportunity for the public as well as institutional investors to invest in Bitcoin and other Altcoins, as they are expected to experience a recovery and increase its value. It is not very unnatural in nature that something takes a few steps back in order to experience a giant leap and thus even holds good for the cryptocurrency space.

 

Disclaimer

Although it is a great opportunity to invest in cryptocurrencies, the fact that constantly needs to be reminded of is that the cryptocurrency market is highly volatile and subject to the market conditions. An investor compulsorily needs to do an extensive background check on the project prior to investing in it. Otherwise, hasty decisions would lead to tons of losses, which is absolutely not viable in this generation which moves on the competitive edge of the technology. An investor should be able to stake the amount which he or she is OK to lose, otherwise, cryptocurrencies is not a suitable place for them.

#Bitcoin Price Analysis

Bitcoin Price to $4500 soon? BTC Price Analysis

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Bitcoin price moved above $4000 yesterday and currently trading around $4100. The buyers are trying again to break through the strong resistance at $4200.

Technical Indicators:

Support Level: $3900

Resistance Levels: $4100, $4200

 

Bitcoin Price Analysis:

On the hourly chart, bitcoin price has been quite bullish since last week when it reached a high point of $4160. However, bitcoin was not able to break through the resistance around this range. Again bitcoin started a bullish momentum on 18th March and reached up to $4120 before but started to correct downwards later. It went below $4000 support level.

Bitcoin price moved above $4000 yesterday and currently trading around $4100. The buyers are trying again to break through the strong resistance that is formed between $4100 and $4200. If the current resistance is broken, there are chances that bitcoin could spike up to $4500 in the short term. The current momentum surely signals a ‘buy’ time. However, if bitcoin is not able to break through this resistance for long, it could result in BTC price falling back below $4000 and even $3900 range and turn bearish.

BTCUSD Hourly Chart

BTCUSD Hourly Chart

Last week, bitcoin tested the $4200 resistance but failed to break through. The sellers pushed the price down to $3832. Later, buyers were able to start a fresh bullish momentum and moved the price above the 12-day exponential moving average which was turned into support. Bitcoin moved above $4000 and the buyers are currently moving ahead to fight the sellers at $4200 resistance level.

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#Bitcoin Price Analysis

Bitcoin Price Analysis: BTC at a crucial point

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Bitcoin price is currently situated well above $3940 support. BTC could very soon fall downwards if it is unable to break above $4000 resistance level.

Technical Indicators:

Support Level: $3940

Resistance Level: $4000

Key Points:

  • Bitcoin price is struggling to break the $4000 resistance.
  • BTC recently fell downwards and tested the $3940 support and 100 hourly SMA again.
  • A bearish pattern line is formed at with resistance around $3980 on the hourly chart.
  • It is very essential for Bitcoin price to reach above $4000 in order to stop the price from falling.

 

Bitcoin Price Analysis:

Summary: Bitcoin price is currently situated well above $3940 support, however, BTC could very soon fall downwards if it is unable to break above $4000 resistance level.

Bitcoin started to correct downwards yesterday after rising up to $4040. The downward momentum was able to break $4000 support level and the price further fell down to test $3940 support.

However, the selling pressure was not enough to break this support and hence bitcoin is currently placed well above this range. Also, there is a bearish pattern line formed with resistance around $3980 on the hourly chart. Hence, it is very essential for bitcoin price to break through the $4000 resistance level in order to avoid a sudden bearish momentum. If BTC is unable to break through, it might crash down and break through the current support.

BTCUSD Price Chart

BTCUSD Price Chart

The chart shows that the bitcoin price will most likely cross over the $4000 resistance level or crash down below the current support around $3940 very soon. Buyers need to gain pace in order to avoid losses.

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#Bitcoin Price Analysis

Bitcoin Price Analysis: Is BTC ready for the next bull run?

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Bitcoin price is currently correcting downwards below $4000 range. However, BTC will likely move upwards as it remains well supported above $3740.

Technical Indicators:

Support Level: $3940

Resistance Levels: $4000, $4040

 

Key Points:

  • Bitcoin price traded in a positive momentum last weak reaching up to $4040.
  • BTC corrected downwards later breaking $4000 support to test the $3940 support level.
  • Bitcoin price was able to break through a bearish pattern line that was formed with resistance at $3970.
  • BTC is currently correcting downwards, however, the support around $3940 is strong enough to stop losses.

 

Bitcoin Price Analysis:

Summary: Bitcoin price is currently correcting downwards below $4000 range. However, BTC will likely move upwards as it remains well supported above $3940.

Bitcoin price traded positively last week and moved above $4000. BTC was able to break the $4020 resistance level and tested the $4040 resistance before correcting downward. Bitcoin moved below $4000 while correcting downwards and even broke the $3980 support level.

The next support at $3940 proved strong enough to stop further losses and keep the price above the 100 hourly SMA. The price then moved over $3960 resistance and was also able to break through a bearish pattern line that was formed with resistance at $3970. BTC even moved over $4000 again but the buyers were not able to compete with the selling pressure and hence it moved below $4000 again.

Bitcoin price is currently correcting downwards, however, it remains well supported above $3940 support level. Also, the next support around $3920 and 100 hourly SMA is also strong. The current resistance lies at $4000 followed by $4040.

BTCUSD Price Chart

BTCUSD Price Chart

The chart shows that bitcoin price is currently trading downwards, however, it is strongly supported at $3940 and $3920. If BTC falls below $3920 support, the overall momentum might turn bearish. However, bitcoin will likely test the $4000 resistance soon where a lot of sellers are placed.

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