Bitcoin - the way is open to the February minimum zone of $5900

Bitcoin dropped below $7750 for the first time since March 19. Today, the price fell to $7400 dollars - breaking through support around $7750, the level for which we had certain hopes. Thus, the market marked the intention to move lower to the next local bottom in the $5920 area. During the last hours of today's trading session, sale volumes increased at all cryptocurrency exchanges, and sales volumes in the US futures market probably affected the market as well. It is interesting that during the last trading sessions in the Bitcoin futures market, the largest CME futures exchanges recorded high volumes and according to the CME's public data, the main futures volume is the volume for sale.

Initially, it was assumed that the launch of bitcoin futures on CME exchange is a positive fact, as it was expected that this would lead to an increase in volumes and an increase in the liquidity of the global cryptocurrency market. Of course, the launch of Bitcoin futures led to improved liquidity of the market. However, although market volumes have increased, the futures market may have had a negative impact on cryptocurrencies. Over the past few months, large institutional funds have obviously taken up short positions in the main cryptocurrency market.

Further, some of the factors mentioned in the media, such as the ban on advertising cryptocurrency in Twitter and Facebook, had an impact on the price of the market as well. Both platforms have banned the use of cryptocurrency ads because of the increase in aggressive advertising initial coins offerings (ICO). The vast majority of ICOs turned out to be either unsuccessful projects or pure fraud. At the same time, as a whole, we cannot fail to note the negative coverage of the cryptocurrency markets in the media in recent weeks.

We keep the conviction that Bitcoin will begin to recover by the end of the year, and once again demonstrate a strong rally. Once the market shows signs of growth, it is clear that speculative hedge funds and simply speculators will be able to drive the market up to the levels of last year's highs. Now what is left to do is to wait until the market reaches the local February bottom in the $5900 zone.

FortFS