During past two months, Bitcoin (BTC) has been increasing its price. However, things changed last week. The most popular cryptocurrency took down a peg or two. Is it going to decrease more? Or is it set to shoot through the roof?
Yesterday, we analyzed the Litecoin’s chart. Now, it is time to go back to Bitcoin. A lot is going on the graph of the largest digital coin. Check out our analysis.
To stop decreases
At the final moments of the last weekend, BTCUSD stopped short-term downward tendency and returned to the powerful resistance at about 8000 USD. The lack of clarity regarding the variability of movements causes the increase of uncertainty on the market, as well as numerous speculation. In recent days on social networks, we could observe strong reactions to the market situation prevailing on Bitcoin.
Everyone who invests is aware that the high variability of movements is useful because it affects the trade. The fluctuations of quotation also have an impact on the differences in market capitalization. Bitcoin, however, as the first and the oldest cryptocurrency unquestionably leads the market.
Asia is the key factor
We analyze in a narrow time interval to be able to detect market anomalies. We can observe significant movements during the night hours of Central European time. It is, however, the intense time of activities on the Asian market. The market reaction can be considered in the two categories. The night sale on May 17 could be caused by the large orders connected with making profits, thus eliminating ‘take profit’ positions. Another possibility is increasingly repeated speculation about the market manipulation and price regulation. Undoubtedly, regardless of the reason for the sale, these movements caused anxiety among traders. However, the price quickly returned to the determined resistance, and for the second time on May 19, we could experience large night variability, defining the growth direction of the market. Once again the question arises, what caused such demand among investors? Is it the actual market value of Bitcoin or artificially driven machine?
The Bitcoin rate moves in the two upward channels nowadays. That is why it would seem that the trend is constantly dominated by demand. BTC has risen from the resistance area of 5900 USD, which will be currently the support for the rate. The tendency seems to be pro-growth, however, after observing the weekend fluctuations, we can expect the abnormal movements from the point of view of technical analysis. The key is the nearest resistance at 8300 USD, which has been the strong barrier for the demand since the last week.
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