Technical analysis: Bitcoin Correction is not Over Yet

Altcoins, as always, demonstrate the complete absence of their own path, duplicating the waves of negative or positive of the first cryptocurrency. Top 10 altcoins in the moment lose 4% -7%.
Alexander Kuptsikevich

Unable to show growth confidently above $5,300, Bitcoin turned to decline on Thursday. Nevertheless, the current dynamics is more like a cautious profit taking, since cryptocurrencies are much more volatile, sometimes showing very sharp fluctuations in the direction of growth or decline. An eight percent drop of the flagship cryptocurrency from $5,400 to $4,900 fits into the definition of correction after a jump from levels near $4,100 and returns us to the levels of the end of the previous week.

However, if the technical analysis is really a driver for the currency, then you should pay attention not only to the attempts of the currency to keep close to the threshold level of $5,000 but also to another indicator. The relative strength index, RSI, has previously been a reliable impulse indicator for BTCUSD. And its decline below 70 on the daily charts is a signal of the possible further correction in addition to the market players’ frustration of the impenetrability of the $5,300 mark, where the 200-day moving average passes.

Bitcoin’s yesterday’s sale also coincided with the moving of large amounts of coins by the whales. During the day, large investors moved almost 43K bitcoins. The transactions were mainly carried out from stock exchanges to unknown wallets, or in the “exchange to exchange” mode. Market participants generally have the impression that some deep fundamental changes are taking place now, but it’s quite difficult to determine the direction, as there are no obvious changes on the surface. It is very likely that the whales have really gone deep under the water, and it is there that the future direction of the market is now forming.

Meanwhile, very disturbing news for Bitcoin came from China. It seems that a ban on ICOs and crypto exchanges is not enough for the country’s authorities, now the mining sector can also be banned. Obviously, in this case, the cost of mining will increase. On the other hand, in turn, this can be an important price growth driver. In addition, many market participants were cautiously looking at the centralization of computing power in China, and now some of their fears can be dispelled.

This article was written by FxPro

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US