Crypto Daily: The Market Falling after Bitcoin Crash
Over the past 24 hours, the price of Bitcoin has dropped significantly, from $11,900 to $11,200. The Bitcoin chart for the last 24 hours looks a bit frightening. Trading volume jumped quite a lot to $27 billion. Almost the entire market followed Bitcoin and showed a significant decline this time.
We have already noted that twice this week, that there is a high likelihood of Bitcoin dropping to $11,000. This was indicated by numerous factors, including bearish divergences formed on the indicators. And although we have not yet seen this mark, yesterday, Bitcoin fell very close to this level — by $11,125.
Now RSI and Stochastic are well unloaded from the peaks, and therefore their new rise is expected in the near future. An Ascending Triangle pattern has formed on the chart with resistance at $12,000. Buyers actively have been purchasing yesterday’s fall, so the market was up to $11,300. It indicates that a large number of traders have entered the position. Also, the chart pierced the lower Bollinger band 4 times, which indicates that now the price should reverse, taking into account the analysis of this indicator.
All of the above factors indicate that in the coming days we will see another round of growth. Most likely, it will first be in the $11,600 — $11,700 range, and then $12,000.
In the last 2 weeks, Ethereum has stopped forming its structure and repeats the movements of Bitcoin. Since the beginning of August, the coin has been consolidating in the $375 — $400 range. We are still waiting for a correction to the $340 — $320 region.
For the rest of the market, the day was also extremely unfortunate. If you look at the list of the top-100 CoinMarketCap, you can see that the vast majority of coins are in the red zone.
However, there are very interesting exceptions and they are related to DeFi. So, at once 4 coins related to this sector showed very powerful growth: Maker (16%), Compound (32%), Aave (15%) and Synthetix (12%). This is an unusual feature that once again confirms that DeFi is under a strong wave of hype. Moreover, this is manifested in all projects, one way or another, related to this segment.
On a side note, Maker, (which is in our long-term portfolio) has already added 125% of the recommended entry point.
BTT / USDT and TRX / BTC are currently slightly below the recommended buy zone, so this is a great opportunity to buy these coins at a lower price, which will significantly increase the risk/reward ratio.