This week has been a comparatively a rough and a tough week for the cryptocurrencies. The total market has dropped. This accounts to around 24% down from July high of $300 billion. The digital coin No. 1 is range bound after strong movements during the previous week, waiting for fresh triggers to set it moving.
Bitcoin’s price dipped below $6500 yesterday as it fell below a key price point, which could be a sign of an imminent slide in it is value, crypto expert predicted. Yesterday, price was $6571 at its height, which dropped 2% to $6436 over 24 hours. While only a small swing the fact the dipped below a key price point known as horizontal support, could be interpreted as a sign of imminent slump in BTC’s value or “breakout to the downside”.
A breakout refers to a security price movement through historic resistance levels. Crypto expert predicted that a breakout to the downside which means the price could be on the verge of a plunge. He said “I am expecting a breakout from the downside because the horizontal support has already broken today, and the red triangles support has been broken.”
A key volatility indicator which shows the extent of bitcoins price range hit its lowest level in 21 months in September meaning the BTC’s value could be about to swing in either a upwards or downwards direction.
Bitcoin price is slowly rebounding from $6,200 against the US Dollar. BTC/USD must clear the $6,680 resistance and the 100 hourly SMA to gain bullish momentum. Last month we can see, the BTC/USD pair did move higher and broke the $6,350 and $6,550 resistance levels. The move was positive since the price broke the 38.2. Now, in the short term the odds are against the BTC. As seen clearly the price was falling before August when it entered the symmetrical triangle. This means when it enters the triangle it is likely to keep falling after the exit as well. However, for amateur investors who are just looking to accumulate BTC, short term analysis are not much of consequence as the possibilities and probablities are more complex. But, long term trends are much harder to manipulate. Even if the blockchain may soon change the analysis made on a 15min time frame, the world is highly dependent on big data.