What a day! The bitcoin rate rose 15 percent yesterday afternoon and evening. This means that a large part of last week’s losses was blown away in one fell swoop.
You can see that on the graph below. Yesterday the rate fell below 6,000 euros for the first time since May. But that did not last long, the bitcoin rate then rose to almost 6,600 euros!
Will there be a correction?
When bitcoin rises so fast, it is always possible that a correction will be made. The rate then drops to catch your breath. This crypto trader also sees this on Twitter:
The pump was cool, but now it seems it’s time for a pull-back.
Many indicators are reversing now after hitting an overbought area. $ BTC $ BTCUSD #bitcoin pic.twitter.com/6RWFSDRIXY– CryptoHamster (@CryptoHamsterIO) December 19, 2019
Different indicators indicate that bitcoin is overbought. Or in other words, bitcoin is bought too much in too short a time. Bitcoin must therefore be sold to restore the balance. The rate may therefore fall somewhat in the short term.
At the moment, the price has fallen by almost 5 percent since the apex. That seems a lot, but compared to the bottom, the rate is still in the plus with almost 10 percent.
The question now remains: can bitcoin maintain this price? Or does the rate drop back? The zone between 6,300 euros and 6,400 euros can in any case serve as support. You can see that on the graph below on the orange bar:
Little news to substantiate this
The enormous growth in value is somewhat unexpected. After all, there is little fundamental about what can influence the course. The rate also flew up on October 25, but then it was the Chinese president who said he thinks blockchain is a cool development.
Different reasons are sought on different crypto news websites. Consider, for example, the (perhaps) upcoming Brexit and the Impeachment of Trump. That all seems a bit far-fetched to be able to directly influence the price of bitcoin.
We keep an eye on the rates! Tomorrow you will read an extensive bitcoin price analysis again.
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