Changpeng Zhao, general manager of Binance, the world's largest cryptocurrency exchange, based on trading volume and historical charts, said the fall in Bitcoin's price is normal.
Bitcoin, the world's largest cryptocurrency in terms of market capitalization, has recently reached its lowest level in three months. Despite the decline in prices, the CEO of the largest cryptocurrency market remains calm, noting that nothing is abnormal in the current price correction.
In his tweet, Zhao shared a few charts that show significant similarities in the behavior of the largest cryptocurrency in the world. However, he also notes that despite these significant price adjustments, a key factor to be taken into account is the significant progress of Bitcoin prices over the years. Zhao shows that since 2010 Bitcoin has been regularly adjusting even more than the current decline. In 2010, BTC lost 94% of its value (from September 14 to November 8). In 2011, Bitcoin's price dropped from $ 32 on August 8 to $ 2 on November 17. which means another 94% blow. On November 30, 2013, it amounted to $ 1,166 and fell to $ 170.
Whether or not Bitcoin will continue to fall, or has already reached the bottom, will only be seen. Well-known analyst Tone Vays said $ 4.975 is an optimistic scenario for bear market prices. However, if we suggest history, we note that the price of Bitcoin increases after every major correction, reaching its new heights.
Let's now take a look at the Bitcoin technical picture at the daily time frame. The breakout below the level of $6,402 has invalidated the impulsive scenario and the next best count is to treat the downside wave as a part of a big corrective cycle in wave 2. In that case, the technical support at the levels of $5,852-$5,555 is the key long-term support for bulls, otherwise, the price will drop towards the level of $4,958. At the lower time frames, there are no signs of a downtrend to reverse yet. The key intraday resistance is seen at the level of $6,588 and $6,993.
The material has been provided by InstaForex Company - www.instaforex.com