Following the historic fall in the price of Bitcoin to $ 3,700, the short-term trend of the price indicates the formation of an Elloit Wave pattern in lower timeframes. Although it is likely to reverse the upward trend, the declining volume of bitcoin trading reduces the likelihood of an upward trend.
The price of bitcoin, with the exception of a short-term jump to $ 7,300 on April 3, has recently fluctuated between $ 5,800 and $ 6,900, according to the Cointelegraph.
Technical analysts say the decline in bitcoin trading volume, the slump in futures contracts and the sudden return of the V-shaped digital currency market increase the likelihood that Bitcoin will fall in the short term.
An unnamed trader, who predicted in December 2018 that the price of Bitcoin would reach $ 3,000, said that Bitcoin’s current price movements could be in three forms: Elliott waves , a larger triangle or a larger flat (Larger Flat). ) Analyzed.
All three indicators, given the recession in the futures market, indicate a short-term correctional pattern.
Bitcoin’s recent price trend is also very similar to a pattern of “phases and events” in Wyckoff analysis, in which case prices below $ 4,000 will be tested again.
The trader added:
Bitcoin prices can now be analyzed in a variety of ways. Elliott waves, wxy hives, larger triangles or larger flats. I’m not sure about that. The only thing that is clear is the series of 3 wave movements and the lack of motivation for the 5 wave movements. That’s why I think it’s too early to tell.
Traders often disagree about the feasibility of using Elliott waves to assess the price trend of digital currencies, as it can be used to capture both ascending and descending scenarios.
That’s why whenever technical analysts recognize the formation of an Elliott wave pattern in Bitcoin or other digital currencies, they evaluate other important technical data, such as the volume of daily transactions in cash exchanges.
The volume of cash exchanges is an important indicator of the real demand for bitcoin traders in the digital currency market. Contrary to the volume of transactions in futures exchanges, in which transactions are overly leveraged, the volume of cash transactions in large exchanges such as Binance, CoinBase, Kraken, and Bitstamp can provide good information about retail markets.
The price of Bitcoin doubled to $ 7,300 earlier this week after falling to $ 3,600 in futures and $ 4,000 in cash on March 12.
Bitcoin’s trading volume is relatively stagnant for an asset that has experienced a 100 percent price increase and has been unable to return to mid-March levels.
Data provided by the Skew website shows that the volume of bitcoin cash transactions, which reached $ 1 billion on March 12, fell sharply to less than $ 250 million.
The low volume of demand for buyers from small investors and the influx of capital into stable digital currencies typically indicate that investors are preparing for another sharp fall before re-entering the market.
ExPay 24 provides safe and secure services in the shortest time possible. Our services include exchanging cryptocurrencies such as Ethereum, Ripple, Tron, Bitcoin, Tether, Monero and Litecoin to Matercard, Google Play, Webmoney, iTunes and also other various services. Your orders will be placed 100% automatically. Contacts us for more information.