At 8 o'clock last night, a big negative line appeared on the k-line chart of Bitcoin again. In just two hours of trading, Bitcoin plummeted 7.65%, falling below $7,400. When the price subsequently pulled back, its upside space was still restricted by support turning to resistance at $7,500, which seemed to indicate that Bitcoin will continue to decline in the future.
Related analysts pointed out that this year, after Bitcoin reached its peak of $1,400, it began to enter a long "consolidation period". As of now, Bitcoin's trend has formed a " decline triangle " - a mainly bearish structure (usually when the connection line of the retracement low is approaching to level, while the connection line of the rebounding high point is tilted downward, which means that the power of the market seller gradually increases, causing the high point to evolve with time, and the lower the market is lower and lower. The buying orders supported by the lower level gradually weakens, and the selling pressure that retreats and waits for a wait-and-see selling pressure gradually increases. When the buying force becomes weaker and the selling pressure gradually increases, it is sorted to the end, and the volume can be moderately amplified, and the price has a greater chance of falling below). Following this trend, the price of Bitcoin will continue to fall and eventually fall to $5,000.
This negative price movement has also led to a plunge in the overall cryptocurrency market, with most major altcoins reflecting the price movement of Bitcoin and falling to new months lows.
It is not difficult to find that the situation is no better than Bitcoin, and there is a faulty decline at almost the same time. Ethereum, the second-ranked cryptocurrency, fell from $167 to $153, a decline of 7%; Ripple , a third-ranked , fell from $.029 to $0.25, a decline of about 6%; Litecoin , Binance Coin and Bitcoin Cash also suffered similar setbacks. According to statistics, the entire cryptocurrency market value lost about US$19 billion in 24 hours.
Perhaps, the bear market that began last year has not ended - the total market value of cryptocurrencies fell to its lowest point of $100 billion in December last year, but in just six months it soared to nearly $400 billion. For most cryptocurrencies, this almost 300% growth is not even a real bull market, as this is largely driven by Bitcoin.
Overall, the collective decline of this cryptocurrency market seems not surprising, as Bitcoin has shown an negative line in the past few days and weeks, which has shown its potential weakness.
The next few days are crucial to determining the next move of Bitcoin, as Bitcoin’s inability to trigger a relief rebound in the short term may mean a further sharp decline.
