Home Cryptocurrency Bitcoin Price of Bitcoin moves down in correction, but further gains seem likely

Price of Bitcoin moves down in correction, but further gains seem likely

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The price of Bitcoin is in correction, declining by 0.5% for the day, but defending the key position of 4,040 USD. However, according to the analysts, further gains seem likely. Bitcoin price started a slow and steady rise and showing positive signs and it seems like there could be an upside extension above the 4,040 USD levels.

Ethereum is also on the downtrend, decreasing by 0.76% to 139.14 USD, while XPR is down by 1.12% to 0.3146 USD. Litecoin, EOS and Bitcoin Cash are also trading into the red.

The total value of the cryptocurrency market is 139.842 billion USD.

Bitcoin price analysis

Recently, there was a decline in Bitcoin’s price below 4,000 USD.

However, the 3,940 USD level was acting as strong support along with the 100-hour simple moving average. Later, a solid support base of 3,940 USD was formed and the price slowly increased. The cryptocurrency broke the resistance of 3,960 USD and the 50% Fibo adjustment rate% from the last drop from 4,041 USD to 3,935 USD.

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More importantly, yesterday’s marked bearish trendline, with a resistance of 3,970 USD, was dashed. The cryptocurrency climbed above the 3,980 USD level and moved into a positive zone. Bitcoin is traded above the 4,000 USD level and formed a peak of 4,017 USD before adjusting lower.

There was a boost below the 50% Fibo adjustment rate% from the last increase from 3,836 USD to 4,014 USD. However, the price seems to follow an upward channel with 3,965 USD support.

The initial resistance is 4,020 USD, above which the price can test the resistance of 4,040 USD. Bitcoin slowly raises a rising impulse above 3,980 USD. However, the cryptocurrency buyers need to gain more than 4,020 USD and 4,040 USD to maintain the latest trends.

Conversely, if there is a break below 3,960, USD the price may fall to the support of 3,940 USD. Any further losses could cause a sharp decline under 3,875 USD in the near future.

Perhaps we will see yet another move into the red before the cryptocurrency hit a steady and strong upward move. However, no conclusions can be drawn as long as the Bitcoin does not recover its 200-day simple moving average or the 5,400 USD level.

Bitcoin and financial markets

Cboe Global Markets, which launched the first futures on the Bitcoin, will stop trading with them. The company decided not to add new futures to the Bitcoin in March, though the company does not rule out the possibility of other derivatives on cryptocurrencies. Currently, however, there are no specific plans for them. Current futures contracts that expire in June can still be traded by investors.

Futures are a tool by which investors are betting whether the cost of an asset, such as the Bitcoin, will increase or decrease in the future. Futures run out every month, which means that in order to run smoothly and continuously their trading, the stock exchange must add new futures contracts with a future expiration date.

The decision of Cboe is another action pointing to the cooling investors’ enthusiasm for the Bitcoin and the other cryptocurrencies.

Chicago-based CME also launched its own futures on the Bitcoin. Trading on CME is almost four times higher than the Cboe.

The investor hopes for a more vigorous move and a rise in the price of the Bitcoin are related to the US regulators’ approval of the first index based on a Bitcoin. So far, however, all candidates have “hit the stone”.

After a lot of disappointments, the hopes of presenting an exchange-traded index fund based on the Bitcoin rose again. A recent invitation by the Securities and Exchange Commission (SEC) has sparked speculation among crypto market watchers that the ETF may be alive.