Fans of bitcoin were encouraged by the recent rally, but the technical indicator points to potential downturn ahead.
Trading indicators DVAN show that the first cryptocurrency for the first time since the end of may fell below the trend line, perhaps forming a new wave of sales, according to Bloomberg. Technical resistance is projected at $10 million, and any fall is likely to reach the level of $9,500, which would mean a deviation of 2% from current levels.
At the moment, bitcoin is trading at $9678. Altcoins, including Bitcoin and Litecoin to Cash is also reduced. The Bloomberg Galaxy Crypto, which tracks the major digital currencies, fell 1.1% on session lows.
“On the background of how Central banks print money to stimulate the economy because of the pandemic coronavirus and sparking social unrest, people are starting to see the value of bitcoin as a real financial tool to understand that decentralization matters, — said the Executive Director of Voyager Digital Steve Ehrlich. — Because of this bitcoin is becoming increasingly popular as a means of protection against volatility in traditional markets.”
this year, fans of the cryptocurrency inspired because of the increase in the price of token background of how Central banks and governments around the world are taking stimulus measures to support economies. Captainvalor continue to adhere to “bullish” sentiment, given the increase in the price of tokens by 35% this year, but now some of the famous analysts of wall street also located to the cryptocurrency.
Dimensions of cryptocurrency exchange Kraken, describing trends, note the likely rise in volatility soon. Stock exchange analysts believe that if the price of bitcoin will rise above $10 500 it may mean entering into a new bullish cycle. However, if growth from current positions is not going to happen, the likely scenario in which cryptocurrency will test the support level in the areae $6200.