As bitcoin and other cryptocurrencies experienced a serious fall, investors wondered “why did the market fall so sharply” and “are new purchases justified with such sharp declines.”
Over the past two days, the price of bitcoin has fallen by about 16%, dropping to its previous key support level at $ 9500, then it has moved below the level of $ 8400. Altcoins have got even more: over the past 24 hours, Bitcoin SV has fallen by about 19%, Bitcoin Cash – by 21%.
Despite the fact that technical analysis indicates further short-term losses, some key market signals may indicate that the market will soon enter the oversold zone, and in the coming days there will be opportunities to buy BTC .
On June 7, almost three weeks before Bitcoin reached an 18-month high close to $ 14,000, the crypto fear and greed index reached 27, registering “fear”.
On Wednesday, the index fell to 15, registering “extreme fear”, which could be a sign that investors are too worried and tend to sell in order to make a profit. This seemingly bearish mood on this index can be interpreted as a signal to buy.
According to some analysts, if stock markets continue to lose and global economic signals continue to weaken as China and the US trade war, investors may turn to Bitcoin as a safe haven in the coming weeks.
Publication date 09/26/2019
Share this material on social networks and leave your opinion in the comments below.
