The price of Bitcoin has fallen by almost 30% since it rose to $ 10,600 in October . Technical analysts have begun to consider a new setback to the high region of US $ 6,000.
On October 21, due to a cascade of short settlements in the main margin trading platforms such as BitMEX , BTC rose above the key psychological level of US $ 10,000, as reported by Cryptocurrency .
Since then, the original cryptocurrency has struggled to regain momentum, falling below an important support level of US $ 7,700 in the last two days and becoming vulnerable to a correction greater than the range of 6,300 to 6,800 dollars .
Is a fall below US $ 7,000 likely?
When the volume in the crypto exchange market does not recover and the selling pressure continues to increase, it leaves Bitcoin with a higher risk of a short-term decline .
Over the past week, the bulls have not been able to respond to the growing sales pressure, despite the growing number of short films on margin trading platforms.
Historically, when the financing rate in BitMEX became negative, indicating that there are more short contracts open in the exchange than long ones, it has led to frequent so-called detention hunts, which causes the price to increase by “seeking” liquidations of short contracts
However, possibly due to the low volume and intensity of the selling pressure, the price of Bitcoin has not shown substantial short-term upside peaks to test the key resistance levels.
In the near future, as technical analysts, such as Josh Rager, said, Bitcoin’s failure to maintain a crucial level at $ 7,700 will likely cause a fall in the region of $ 6,000, and operators will consider $ 6,800 as an imminent target. .
As factors of the decrease and the possible fall of bitcoin , analysts point to BTC falling below the mining equilibrium price , which is said to be above US $ 8,000, and the notable decrease in the volume in the market in general.
The altcoin market receives a major blow
After the fall of the price of Bitcoin almost overnight, the price of Ethereum has dropped from 180 to 155 dollars, by around 14%.
Both against BTC and against the US dollar, most of the main alternative cryptocurrencies such as XRP , ETH and Bitcoin Cash have performed poorly in recent days .
