Tuesday, December 4, Bitcoin is recovering moderately in price and is trading at USD 4038, according to Dmitry Gurkovsky, senior analyst at RoboForex.
If we consider the dynamics of the Bitcoin on a 4-hour timeframe, we can see the development of a medium-term correction phase. The previous downtrend ended with the convergence and the breakdown of the resistance line, then the trend growth reached an area of 23.6% on the Fibonacci scale. The current short-term downward movement is intermediate wave internal correction. The completion of the local correction wave will break out of the declining channel resistance at 4140. A break of that level could be the beginning of the formation of another pulse of growth to the Fibonacci levels of 38.2% ($4640) and 50.0% ($5003).
On the 1-hour chart of Bitcoin you can take a closer consider the short-term downtrend. The first thing worth noting in the current movement channel is the last pulse failed to achieve the target line of the relevant corridor and $3590. This may indicate a weakening of the force of the downward movement. So you should consider the option of growth to the resistance level at $4140. A break of that level could open the way quotations at the top of the projection corridor. The closest growth target will be local high – $4406,50 and then target resistance at $4555,00.
November this year was probably one of the most problematic months for Bitcoin lately. In November, a key cryptocurrency has lost 57% of value, and since the beginning of the year decreased by 218%. Not to say that BTC played against a certain kind of news or information – rather, the situation developed on the principle of “snowball”, and eventually become an avalanche character. In addition, the market for a long time no fresh ideas, and therefore no new capital inflows. This plays against the capitalization of the entire cryptocurrency market.
According to the latest data, the complexity of the Bitcoin network is reduced. As of 3 December it fell by another 15%, the biggest drop for 7 years. This figure formed the basis of the total computing power of mining hardware is – to put it simply, users simply turn off the equipment because they do not see potential for earnings right now. In such circumstances, the device for mining operating at a loss, and users don’t like it.
Meanwhile, the forecasts concerning the development of Bitcoin in the market vary. A number of investors believes that ahead of kriptonyte another wave of negativity, and it should be ready. On the other hand, it is believed that interest in the sector blockchain is cyclical, and a decline in the demand for money will soon be replaced by “stormy” interest and purchases. So says Jim Breyer (Jim Breyer), which says that cryptocurrencies are preparing to go into a state of “nuclear winter”, but then followed by recovery. Brayer says over bloccano running a huge number of the best scientists and “bright minds”, hence, the fundamental interest in new technologies “just around the corner”.
Forecasts financial markets are private opinion of their authors. The current analysis is not a guide to trade. RoboForex is not responsible for the results that can occur when using trade recommendations submitted reviews.