The stock market may close on weekends, but Bitcoin never stops trading. BTC has spent most of the past days consolidating around the area between $ 8,000, and analysts seem to have found a bottom.
After a week of sharp declines, the cryptocurrency market cooled off at the end of the week and the decline halted. Total market capitalization holds at US $ 245 billion, down 20% from its peak level so far this year.
Since the beginning of 2020, the digital asset market has increased by nearly 30% so the latest dump is not so bad. However, the brink of a recession won't be good news for crypto assets, since people often have less money to spend on things like transactions and investments.
Bitcoin bottomed out?
Bitcoin's decline seems to have ended last weekend and there were no further losses at the weekend. BTC has started consolidating around the $ 8,600 area – where it is trading at the time of writing.
According to Tradingview.com, BTC fell to $ 8,400 a few hours ago but has recovered since then and made a higher push to current levels.
Since the peak was set a few weeks ago, Bitcoin has adjusted 18%, which is not unusual in the grand scheme of things.
Well-known analyst and trader Josh Rager has his eye on the CME chart to identify the bottom and a control point for the futures market at $ 8,166.
"Last time, the price hit a high volume area at the local bottom of about $ 6,400 – the point that led to a price reversal,"
$ BTC Potential Bottom
Point of control for the entire CME BTC chart history is at $ 8160
Last time price hit a major high volume area was at the local bottom around $ 6400 which led to price reversal
Watch for the weekly candle to stay above $ 8160 w / a wick down as low as $ 7800 pic.twitter.com/UO8rl0FYu9
– Josh Rager 📈 (@Josh_Rager) March 1, 2020
The weekly candle is a big red candle, but it closes at $ 8,539 and if yesterday's candle was a doji it could see indecision and reversing the short-term trend.
Rager adds that the price does not go straight down and eventually it will have a solid rally even if the trend continues in the current direction.
Meanwhile, CryptoHamster analyst looked at an in-depth overlay of order book and observed the accumulation of long orders just below the current price with very few short orders on it.
– CryptoHamster (@CryptoHamsterIO) March 1, 2020
“I think statistically it will increase, but if the trend is strong, of course, they can see a sell-off,” he added.
The movements of the stock market and macroeconomic prospects are likely to affect the cryptocurrency market. A recovery for either Bitcoin catalyst may need to continue the uptrend, but the additional losses will quickly get worse.
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According to Bitcoinist
Translated by ToiYeuBitcoin