BREAKING: Bitcoin rate drops 6 percent in 5 minutes

In the world of cryptocurrency, things sometimes go so fast that you don’t believe your eyes. That was just the case. The bitcoin rate has fallen by more than six percent in less than five minutes. You can see that clearly on the price chart below:

A big damper, but what’s going on now?

Price has fallen due to support

The price of bitcoin actually moves throughout the month between 7,100 euros (orange bar) and 7,800 euros (blue bar). Until today, the 7,100 euro zone seemed to be a strong support, the rate seemed to be below this level. Today bitcoin broke out.

We said yesterday in our exchange rate analysis that 6,700 euros could be the new support. That now also seems to come true. The decrease appears to stop at this level for the time being.

Great movement was already ahead

The price has moved sideways over the past month. These times of rest are often a kind of calm before the storm. An indicator that nicely reflects that is the Bollinger Bands. We discussed this in our price analysis last week. Is the space between the top and bottom of the tire getting smaller? Then a major outbreak often follows. A big movement had been around for a while.

The indicator does not tell you anything about whether this will be an outbreak up or down. We can now ensure that the price of bitcoin is going down.

Where is the course going now?

For now it is important that bitcoin continues to find support at 6,700 euros. In the event that the rate rises again, 7,100 euros can form a new resistance. If we look further up, then 8,500 euros is an important resistance.

Is bitcoin also due to the support of 6,700 euros? Then our eyes are on 5,500 euros. This level has been an important support throughout 2018, and can now again provide support.