Summary:
- A crypto market has seen a notable pullback so far this week
- Bitcoin hovers nearby its crucial support
- Worrisome revelations from China
Everybody across markets well knows the adage that the calm is always followed by the storm and it perfectly fits into the cryptocurrency market over the course of the recent weeks. Namely, after some range trading a sudden jump came up. The price of Bitcoin almost reached $10k, but since then it’s been gradually losing steam. Moreover, it has recently moved downwards at a quicker pace, breaking below the lows observed roughly a month ago. Looking around the crypto market this week, it's worth mentioning some worrisome revelations from China as the country has yet to decide whether to shut down a Binance office in Shanghai.
Bitcoin is currently moving around $7000 which seems to be a strong psychological support. If the price breaks below it, then a move toward $6500 could be expected. Moreover, bears seem to have an advantage and are being supported by the two moving averages presented in the chart above. Nevertheless, should bulls take control anew, then one would anticipate a rally toward $8200 or even higher toward $9400. Source: xStation5
Historical pattern:
Looking to the past one may notice that Bitcoin tends to follow a similar pattern. After it dropped almost 43% in November last year, it then rallied as much as 34%. If this pattern is to repeat, Bitcoin could fall to $6500 and then rebound sharply back toward $9050. Source: xStation5
Stellar/Bitcoin has been falling so far this week and it seems to have found a support in the form of the lower bound of the overbalance structure. If it breaks below this line, a move toward $0.068 could be on the cards. On the flip side, once bulls take control, a corrective move to $0.0875 looks possible. Source: xStation5
Crypto news:
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Some investors claim that declines seen in the crypto market this week have been spurred by false reports coming from China suggesting a shutdown of a Binance office in Shanghai. Although it was denied by the exchange’s authorities, the report sent cryptocurrencies plunging. Let us also remind that the authorities in Beijing encouraged market participants some time ago to inform about illegal activities regarding the crypto industry. The latest information suggests that as many as 39 cases have been reported to the PBoC. It may substantially affect cryptos’s pricing going forward.
