Bitfinex and Tether made headlines last week. It shook up the whole industry. After a few weeks of increases, the price of Bitcoin dropped significantly. However, is it a sign of further declines, or is it just a new start for the most popular cryptocurrency? Let’s see, what the analysis shows.
We already made one BTCUSD analysis over two weeks ago. Back then, Bitcoin went up pretty fast. Now, we don’t have that kind of good news.
Are there any frauds in the house?
Short-term investors should not have any reason for complaints and frustration as the recent behaviour of the cryptocurrency market is characterized by high variability, giving many opportunities to make profits. Bitcoin, after establishing new April highs in the previous week , dropped nearly 10% in response to the message about possible embezzlement of capital by the cryptocurrency exchange Bitfinex. It was published on April 25 by the Attorney General’s office in New York.
On April 24 this year, BTCUSD established a new resistance at the level of 5,655, which set an upper line of the parallel channel that began on April 3. In the middle of the month it seemed that the level of the lower channel line permanently broke creating a new upward trend. It was created by a new arrangement of the support levels area which was fueled by the activation on the buyers’ side. However, the information mentioned strongly contributed to a break of the barrier at 5,430 making the price return to the vicinity of the bottom line of the channel at 5,200.
The chart gives a promise
After successful defense of the support, it seems that the market is in a growth impulse which has not been significantly supplanted after reports related to the Bitfinex cryptocurrency exchange and the cryptocurrency Tether. If the demand side continues to maintain a mild, but in its way a consistent upward trend, we can anticipate the movements to around 5,800. The next test will be at level 5,650 which will show the market sentiment. However, it is also currently possible to return to the support at 5,300. The nearest hours will show the moods in the cryptocurrency market.