Bitcoin faced with a massive sale-off declined at some point in the morning below $10,000. Lately, quotes have stabilized slightly above this level. However, over the week of sales, the total capitalization of digital assets collapsed by $80 billion. If at first only alternative cryptocurrencies were falling, faced with a lack of investor confidence, and the flow of released funds was flowing into Bitcoin, now it seems that investors have ceased to believe in the reference cryptocurrency as well.
For large investors, the current situation is a gift. They bought Bitcoin when it cost $3,500 and sold it at $13,800. Now market participants are creating an opportunity for “whales” to buy at new local lows. The RSI index on the daily chart fell sharply from the overbought area. The number of short positions to BTCUSD declined to a minimum level of 5,776. This is evidence that everyone who wanted to sell – sold. Now it is important to observe in the near future whether there will be enough buyers to quickly buy back the decline.
The FxPro Analyst Team