Does the bitcoin rate have a bottom? The coin is in any case traded at a floor price. The weekly red candle is as red as the card that Nigel de Jong should have received in the final. But even the bottom of last week’s candle did not offer enough support for bitcoin, because the cryptocurrency even dropped below 6,600 dollars. And this is a dangerous zone, because $ 5,000 comes very close and that is a critical point.
Price promotion in the middle of the night
If there is strong volatile action on the market, this often happens in a short period of time. And unfortunately often when most of us are asleep or just snoozing for the first time. Positions are being liquidated en masse and there is a long squeeze.
During the weekend, bitcoin seemed to move pretty sideways and stay just above $ 7,000. But once it was Monday, the rate collapsed, lowing $ 6,578. This is a prize that we have not seen since May of that year.
If you look at the past 24 hours, bitcoin has lost 7% and even 22% every week. If you compare it with this year’s high point on 27 June, the halving seems to have already taken place because bitcoin has returned 52%.
On Tradingview.com you can see that the RSI (indicator for buying and selling pressure) is oversold. According to the technical indicators, bitcoin is now being sold too much, and that may be a reason for a small spurt up.
Trader Josh Rager predicts that too. He looks at the same chart and wonders himself when bitcoin recovers towards $ 7,000. Will there be another fall or not before we go back to $ 7,000?
$ BTC Weekly close
18% drop this week and currently trying to hang out at the $ 6800s
Funding still positive, so not overly bearish at this point as $ 6300s would be an eventual target here, the only question is does it bounce back up to high $ 7ks before or after the next drop pic.twitter.com/UkNj7kJT9W
– Josh Rager ? (@Josh_Rager) November 25, 2019
And those 5,000 dollars?
$ 5,000 is an important limit to keep in mind. Because if we go under it, we are below the moving average of the MA200, which is the moving average of 200 measuring points. Each measuring point is one candle of a week in this case. This indicator proved to be a solid support even in the year-long bear market of 2018.
At the beginning of this year we also briefly touched the 200MA and from that moment on they were purely green weekly candles. So yes, $ 5,000 can be a reason for panic, but also a support for a repeated way up.