Analyze charts: how negative news around Bitfinex effect on the price of Bitcoin?

Amid drama with Bitfinex and Tether the price of Bitcoin fell below the support zone of $ 5380. The main cryptocurrency fell back to almost 5,000 dollars, but soon began to roll back up. Looking at the chart, we should expect a consolidation phase before the next price movement.

The General situation looks like this:

  • Bitcoin has broken several local lines support;
  • scale 1-hour chart formed a descending channel with resistance just above $ 5160;
  • soon, bitcoin could fall to $ 5050.

Today Bitcoin is trading at 5264 dollars. For the past day the price of BTC fell by 0.4 percent.

Technical analysis

Yesterday we witnessed a rather sudden collapse of the asset that was due to the negative news around the stock exchange Bitfinex. However, the trading platform denies funding problems.

The drain was so strong that the Bitcoin for some time came down even below $ 5,000. Fortunately, the market quickly formed the conditions for oversold and the coin jumped up. Thus while the price of BTC remains below the moving average SMA 100 scale 1-hour chart.

Good support during the fall was the level of 0.618 Fibonacci laid on a wave of growth with 5292 4913 to dollars. Currently trading BTC/USD continues to move up, but ahead of it is still quite a lot of obstacles.

Source: TradingView.com

If the bears are not starting a new drawdown, it is safe to open long. Even after yesterday’s events, buyers managed to keep Bitcoin above $ 5,000, indicating that the presence of a large number of bulls in the market.

These technical indicators include growth — the MACD line is at the scale of 1-hourly chart is in bullish zone. RSI is slightly above average. Tuned to the market situation follow our cryptodata.

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