Bitcoin reached the first significant support around $7800-$7700, what is next?

Over the past three days, the capitalization of the cryptocurrency market has fallen by more than $42 billion: from $412 billion to $369 billion. It is characteristic that throughout the current week, the market capitalization is kept approximately at these levels, while the bitcoin market has approached the previously announced target of $7,700-$7,800, where the first significant support takes place. The daily trading volume on the market also fell by about $3 billion from $22 billion to $19 billion.

Earlier, the price of bitcoins fell below $8,000, the first time entering the region for 7,000 dollars since mid-April. On the chart, both simple and exponential moving averages demonstrate strong short signals even at around $7,925. The positive aspect is that the relative strength index (RSI)of bitcoin shows the oversold conditions.

Traders were waiting for Blockchain Week in New York, the largest conference on cryptocurrencies in the world, and hoped that this global event would lead to a revival of the market and at least some attempts to gains.

Nevertheless, the bitcoin downtrend is still strong after falling below the key resistance level at $8200 the bulls to seize the initiative.

FORTFS analysts reported throughout the week that the resistance level of $8,200 is an important support level to watch, and traders should closely monitor it. However, as soon as it was broken, it became obvious that the market would decline further. On the background of stronger dollar, bitcoin market broke through to the region below the $ 8000 mark, and now $7,800-$7,700 is in the focus of the entire market as the first serious support.

FortFS