Bitcoin bears seem to have exhausted, all attention to the support level $7745-$7800

In our yesterday's article, we stressed that, the price of Bitcoin is declining towards important support at $7745-$7800. It’s early to speak about it but the break through this zone will indicate the intention of the market to move lower to $7100-$7000. Shortly before the start of US trading session, the digital currency is trading at levels of $7877.

Over the past 24 hours, capitalization of the entire cryptocurrency market has decreased by 21 billion dollars to a level of 348 billion - the minimum value for the last two weeks.

As we noted earlier, the recent correction of the cryptocurrency market can be connected with three main factors: large-scale sales of MT Gox in early May, Bitfinex taxation policy and scandal involving the two largest exchanges UPbit and Bithumb.

These factors forced investors to lose confidence in the cryptocurrency market in the short term.

Probably, in the short term, the BTC price will drop to a lower level at $7000. The relative strength index (RSI) of Bitcoin has already begun to show overselling conditions, which usually leads to a strong rebound for BTC. But due to a strong downtrend in the market, the RSI signal is likely to be ignored, and the bears will continue to push the price to the $7000-$7100 zone. However, if the market can show a day close above $7745-$7800 this will also indicate that sellers are exhausted and further downward movement may change to consolidation at current levels.

FortFS