Bitcoin analysis for 07/09/2018

In the last 24 hours, the entire market has decreased many coins have lost at least 10%, and some twice as much. Even stablecoins did not save themselves from falls. The crypto community is trying to explain this phenomenon.

There are several major theories in the community: the first is that the bust has occurred because of the news that Goldman Sachs is abandoning crypto plans. Second, that Bitcoin was sold at dumped prices by several cryptocurrencies, in particular, BitMEX. The third and most common is that it is a simple market manipulation. Others wonder if this could be a bull-trap or a false signal that the downward trend in asset prices has reversed and is going up when in reality the price will continue to fall. Manipulation theory has come up with some interesting ideas: Twitter user @bechokoy_betts says "that's why decentralized markets do not work in a way." Others argue that volatility has nothing to do with decentralization and that it will eliminate any possibility of approving a bitcoin ETF fund. The crypto community is somewhat concerned about the upcoming decision regarding Bitcoin ETFs, and here the Goldman Sachs decision theory appears: many believe that a steep decline in the market is a reaction to this decision and that Wall Street is giving up the crypto. CNBC television talked to experts about the next Bitcoin catalyst and whether the Bitcoin ETF still has a chance to exist. The biggest problem for Goldman is that it would be difficult for them to obtain institutional investors in integration with cryptography. The hopes of retail investors for greater institutional presence were motivated by Goldman Sachs plans. If those plans are now abandoned this is a negative sign when it comes to liquidity on markets. The second theory on the subject of crypto that Bitcoin is being dumped is one that connects to the previous two: no matter which causes initially lowered prices, dumping was probably due to panicky sales, the community believes.

Regardless of what the caused the market sell-off, crypto enthusiasts would like to know when the falls will end and whether better days can be expected. So, let's take a look at the Bitcoin technical picture at the H4 time frame. The market fell from the level of $7,376 to the level of $6,216 and currently is in the internal corrective cycle. The nearest target for the correction is seen at the level of $6,514, which will act as a resistance. In a case of n extension of the correction, the next technical resistance is seen at the level of $6,752. On the other hand, the next technical supports are located at: $6,179, $6,083 and $6,034. The key technical supports is still seen at the swing low at the level of $5,848.

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The material has been provided by InstaForex Company - www.instaforex.com