The movements of the main cryptocurrency Bitcoin follows those of traditional markets during this crisis, refuting the popular view that Bitcoin could be a “safe haven” in times of financial turmoil.
Due to the ease of liquidation of this type of assets and the specifics of pricing, Bitcoin is quite volatile and currently offers great opportunities for trading scalpers and day traders.
After jumping as much as 14 percent just after the Federal Reserve’s announcement yesterday and appeared to close the week above 200MA, the price of cryptocurrency-based currency quickly adjusted and continued on a strong downward trajectory, reaching a daily low of $ 4,500. The weekly spot market closed below 200 MA, which should be a red light for all investors.
In today’s session, BTCUSD found support around $ 4500 – between .707 and .618-.65 Short-term Fibonacci (bottom – 3850 USD and 5987 USD peak).
The 4-hour chart, which will close in the next 30 minutes, shows a Bullish Divergence on the RSI oscillator, signaling weak sales pressure.
Clear break of $ 5120 from the buyers, the price is expected to rise to $ 6380 – $ 6490.
Failure by buyers to maintain a support level of about $ 4,500 will result in a local bottom test of $ 3,850, and most likely a drop in the 2018 price level of the bottom at $ 3,120.
Trader Georgi Bozhidarov