According to the market value, the world’s largest encryption currency begins to fall on Thursday 19:00 UTC (US Eastern Time at 2 PM), follow the trend of the stock market, the stock market fell sharply at 4 o’clock in the United States.
The following is the reason behind the price that the analyst says:
Negative market emotions
The price drop of Bitcoin (BTC) is a simple continuation of the same trend in the past few weeks – negative market emotions. Jason Denne, said: “This emotion is driven by a series of frustrating messages, which overwhelmed any form of objective asset data.” Although deane’s long-term prospects are active However, he believes that the current price trend may continue in the near future and may further down on the pressure. “Once the fear begins, it takes a while to break, you only need to wait to surrender, and then go back to” normalization “range.”
2. Leverage multi-headed position
According to IDX Digital Assets founder Ben McMillan, another reason is that the leverage is long, which exacerbates the sale of Asia on Friday. “Bitecoin is almost always.
3. BTC links with traditional markets
Intotheblock Research Supervisor Lucas Outumuro said that Bitcoin and a broader encrypted currency market As a whole is acting as high emotional Beta Assets – this means that it is developed simultaneously with a broader market, and is more affected by recent negative emotions. “The concerns of macroeconomic and poor technology companies have also exacerbated this correlation,” Outumuro said.
Since the seller maintains a downward trend of two months, the Bitcoin (BTC) failed to maintain a short-term support of $ 40,000.
The over-sell signal is not sufficient to maintain the buying, which means that long-term indicators are more reliably determined the price direction of Bitcoin.
As of press time, BTC’s transaction price is approximately $ 38,000, and it has fallen about 10% in the past 24 hours.
Since December, the uplink momentum slowed on the moonline map and the weekly chart has always been a continuous topic. As long-term rising trends weakened, although it occasionally overcharge signals, the seller usually exceeds the buyer.
In addition, when retransmission (decreased from the percentage of peak to the bottom of the valley), short-term traders tend to reduce the size of the position and tighten the trading parameters around the support and the resistance region.
Bitcoin is about 40% lower than its historical point of $ 69,000, which is a major retreat. The previous decline occurs in July, and the BTC received approximately $ 28,000 from the peak of about 50%.
At present, the initial support is around $ 37,000, which can stabilize the current sale. The relative strength (RSI) on the daily chart is the largest over-sell since May 19. The trading of the two months has rebounded.
If the pressure acceleration is released next week, BTC may find stronger support around $ 30,000.