After reaching a 17-month high of $ 13.8 thousand, in less than 20 hours the bitcoin rate fell to $ 11.8 thousand, and based on the bearish pattern on the daily chart, it may decline to $ 10 thousand. However, technical indicators indicate preservation overall positive trend.
The rate rollback by 15% occurred against the backdrop of an almost exponential growth since June 10. During these 17 days, the price jumped from $ 7.5 to $ 13.8, so the current drop looks like a technical correction due to the high overbought indicator, as indicated by such inductors as the RSI, which were at the levels of January 2018..
Despite the loss of $ 2 thousand in less than a day, bitcoin grew by 183% over the quarter, which is the best indicator in the last 1.5 years. At the time of this writing MTC trading at $ 11 670, having fallen 10% in 24 hours
Despite the strengthening volatility, which may remain at the same level in the coming months, analysts predict a further upward movement and the achievement of new record marks above $ 20 thousand.
In the short term, the correction may deepen and in the next few days the rate may return to $ 10,000 or lower, but this will be a temporary phenomenon. If the price breaks out of the descending channel before reaching $ 11250, then it will be possible to observe the resumption of growth and retest the level of $ 13.8 thousand..
Despite the growing popularity of cryptocurrency, according to a study by Chainalysis, bitcoin is still speculative, not a means of payment..
text: Ivan Malichenko, photo: Shutterstock, chart: CoinMarketCap
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