Crypto Industry News:
According to Skew’s analytical data provider, Bitcoins worth more than $ 150 million have been liquidated on the BitMEX exchange, which is the highest value since the beginning of this year. Millions of dollars in long and short positions caused the value of the cryptocurrency to drop to $ 8,580, which is a decrease of over 6%.
Although the price of Bitcoins slightly increased to $ 8,328, it can be difficult to return to above 10,000 again. On February 16, the market value dropped by almost $ 300 per hour, which gives Bitcoin a value well below that threshold.
Some are already preparing for the possibility that the value of cryptocurrency may fall below $ 8,000. However, some observers are more optimistic. Tom Lee, the co-founder of Fundstrat Global Advisors, predicted that by this summer, Bitcoin’s price would rise to over $ 27,000 based on a 200-day moving average.
Many cryptocurrency exchanges and companies associated with Blockchain technology have felt the impact of a potential global COVID-19 epidemic, also known as coronavirus. Employees of Chinese mining companies have been forced to stay at home or imprisoned out of cities due to quarantine enforcement.
Regardless of the reason for the recent Bitcoin decline, this incident reminds us that the cryptocurrency market can be just as fragile as traditional investments.
Technical Market Outlook:
The BTC/USD bounce towards the level of $9,000 was very short-lived and the price has only managed to hit the level of $8,915. Currently, the BTC/USD is trading above the support located at the level of $8,693 and the momentum remains weak and negative, so odds for another wave down are high. The next target for bears is seen at the level of $8,405 and the main technical resistance is located at the level of $9,013. The corrective cycle is getting deeper as the coronavirus fears affect all financial markets.
Weekly Pivot Points:
WR3 – $11,253
WR2 – $10,744
WR1 – $10,274
Weekly Pivot – $9,742
WS1 – $9,288
WS2 – $8,756
WS3 – $8,263
The market might have made the first impulsive wave up of a higher degree. This strategy is valid as long as the level of $7,582 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $10,433 is clearly broken.
The material has been provided by InstaForex Company – www.instaforex.com