Bitcoin : Weekly Analysis
The last week was a negative turn for Bitcoin’s price and for many cryptocurrencies. The total crypto capitalization reached $ 209 billion, while if the critical point of $ 200 billion breaks, the chances are that it will go down to $ 170 billion.
The correction has no obvious explanation and many analysts refer to Mark Zuckenberg’s testimony before the US Congress Committee and the indirect “war” to Libra Project, showing that cryptocurrencies will never achieve the wanted adoption for the public.
The fundamentals don’t show any severe move over the next days, in contrast with technical analysis, which show that there will be a steep move either upwards or downwards. This can be explained from the short range where the price is trapped around $ 7,700. In comparison with the total cryptocurrency market, most of the cryptos have broken their resistances or are really close on them.
The moves in technical analysis look very similar to those in late September, when after the Exponential Moving Average of 20-days, the price went down. The $ 7,700 resistance broke slightly and the next resistance is at $ 7,300. This level is a last hope for traders and if it breaks, the price could plunge to $ 5,300.