Home Cryptocurrency Bitcoin Bitcoin recovered slightly and trading around threshold of 4,000 USD

Bitcoin recovered slightly and trading around threshold of 4,000 USD

The Bitcoin recovered slightly from the giant loses during the weekend and resumed trading around threshold of 4,000 USD

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The Bitcoin recovered slightly from the giant loses during the weekend and resumed trading around threshold of 4,000 USD.

However, the free fall of the digital currency seems not to be over soon. The overall trend of the digital currency continues to be negative as its price is already below the 4,000 USD threshold. On Sunday, its value fell to 3,475 USD, after which it showed a slight recovery.

On Monday, the digital currency for a while jumped above 4,000 USD, but then fell against below the threshold and around 12:00 GMT is trading at 3,950 USD.

The new depreciation means that the Bitcoin has lost nearly a third of its value in just seven days. This is one of its largest decreases so far. The digital currency has dropped by 80% from its highest value of 20,000 USD at the end of last year.

A large number of speculators are leaving the market, which can be seen by the reduced volume of trade. Bitcoin’s 24-hour trading volume fell under 4 billion USD for the first time on Saturday evening, the first time bitcoin trading volumes fell under 4 billion USD since November last year.

At the same time, the Hard Fork of the Bithoin Cash into the smaller currency triggered new market concerns. On this background, a new threat to the price of the currency has emerged – the crypto-miners, who generate new Bitcoin, are starting to lose interest. The amount of computing power (hash rate) is decreasing.

They have grown over much of the year even when the price of cryptocurrencies has been declining, which in turn has signaled that interest in obtaining them remains, and people are optimistic about price recovery. In recent weeks, however, the hash rate ​​are decreasing, according to Blockchain. This means that fewer miners are working.

The price of Bitcoin is always driven by demand and supply. If miners lose interest, the Bitcoinwill not work and the market as a whole will lose faith. If there is no confidence, people will get off and sell even more.

Bitcoin technical analyze

Bitcoin meets a psychological support at the 4,000 USD in severely oversold conditions.

The Bitcoin price on Monday trading down with marginal gains of 1%, after the huge surge on Sunday. The pair BTC/USD has formed a chunky looking bullish reversal candlestick, with that push seen during the session on 25th November.

The first target of the pair will be 4,280 USD with first resistance at 4,420-4,440 USD and next big challenge for the bulls will be to smash back through 4,500 USD price region. Then strong resistance can be seen at 4,630-4,660 USD for the day. Shorts need stops above 4,800 USD today. A break higher targets 4,850 USD then a selling opportunity at 5,000-5,100 USD, with stops above 5,00 USD.

A break below 4,000 USD is next sell signal targeting 3,800 USD and 3,600-3,500 USD.


Bitcoin’s Santa rally

Despite many bitcoin faithful arguing bitcoin is merely on discount for Cyber Monday today ahead of a so-called Santa rally (which traditionally sees stocks around the world move high in the run-up to Christmas), others are losing faith in the future of bitcoin and cryptocurrencies as this year’s 700 billion USD rout tightens its grip.

Some think the latest bitcoin price plunge will be short-lived and can be remedied with increased institutional involvement and regulatory oversight of the cryptocurrency space.

Despite the volatility currently gripping the cryptocurrency market, many investors predict the traders will use this time as a major buying opportunity.

Ripple technical analyze

There was a nasty downside move from well above the 0.4200 USD level in Ripple price against the US Dollar. The XRP/USD pair tumbled and broke the 0.4000 USD and 0.3500 USD support levels. There was even a close below the 0.3500 USD level and the 100 hourly simple moving average. The decline was such that the price traded close to the 0.3100 USD level. A new monthly low was formed at 0.3126 USD before the price started an upside correction.

Ripple recovered above the 0.3400 USD and 0.3500 USD levels. There was also a break above the 50% Fib retracement level of the recent decline from the 0.4143 USD high to 0.3126 USD low. However, the upside move was capped by the 0.3900 USD resistance and the 100 hourly SMA. Moreover, there is a major bearish trend line in place with resistance at 0.3750 USD on the hourly chart of the XRP/USD pair.