Bitcoin broke below the $7000 and $6400 resistance and support level it had breached only some days ago. The corrective move doesn’t come much to the surprise of the traders. However, the percentage of the drop was massive around 20%; it exposed Bitcoin’s high volatility once again.
The correction from the high was around $2,210 on Bitstamp Exchange down to $6178. Coinbase which doesn’t offer margin and futures trading recorded a low of $6600. The price of Bitcoin at hour UTC on 17th May 2019 is.
The market soon recovered, however, the long orders on Bitfinex seems to have capitulated to the fears of the bear. The expectations of $10,000 in the near future are low.
Interestingly, the short orders surrendered to a higher degree as Bitcoin started to break above $8350 just before the crash. Both short and long orders are consequently at monthly lows. Hence, people who looking to gain from shorting Bitcoin gave in to $10,000 fears as soon as Bitcoin started making a move upwards.
Vinny Lingham, chart and trade analyst weighed in on the crash. Lingham had confirmed that a break above $6400 would yield to bullish momentum. The chart stood true to his analysis, moreover, he maintained his bullish sentiments. He said,
“We’re in a Bitcoin recovery phase right now, since the $3100 bottom. Dips should be seen as good buying opportunities, unless we drop below the $6200 support level.” However, he also added,”Watch out for network congestion and fees hurting this run in the mid term if it moves up too quickly to test $20k.”
Nevertheless, Peter Brandt, an experienced chart analyst, considered it as a ‘buy opportunity’ as we would see highs again in the very recent future. He tweeted,
$BTC reacts into buy zone overnight.”
He also suggested in another tweet that since we are back to retesting to 200-May Moving average on the daily scale, BTC “$2,200 correction should prove to be swing trade buy” Hence, a short term surge might be expected in a couple of weeks, but he is expecting a bigger move downwards post that.
$2,200 correction should prove to be swing trade buy pic.twitter.com/6IBjxgmIs8
— Peter Brandt (@PeterLBrandt) May 17, 2019
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com