Keep falling ! After Bitcoin rebounded at 10 o'clock this morning, it began to fluctuate within a narrow range of US$59,000, and started another wave of decline from around 3 o'clock in the afternoon, reaching US$56,952 at more than 5 o'clock earlier.
Market analysts judge that since many bullish investors will place their stop loss point at the previous low of $56,552 (set on May 1), this point may be tested. If it cannot recover quickly after falling below, then The decline may continue.
The German government transferred 1,300 BTC to the exchange
Many people blame the German government for the reason why Bitcoin has fallen again. According to data platform Arkham, a wallet marked as the German government transferred a total of 1,300 BTC (approximately $74.75 million) to three exchanges: Coinbase, Kraken and Bitstamp at around 4 p.m.
Although the German government's transfer of Bitcoin to exchanges is not necessarily for sale, the move may cause panic among investors and lead to a wave of selling.
Where is the next support level?
On the other hand, some investors may wonder at what point the price of Bitcoin will begin to stabilize after Bitcoin has fallen so sharply. In response, encryption technology analyst Dom's Crypto tweeted that the key support point of 200 MA ($58,484) has fallen below, and the next support point will be $56,700.
Bitcoin fell below the key MA 200 (red), BTC is severely oversold with support at $56,700, and if we get a daily close above $56,700, there is an opportunity for a "bullish divergence" and a revisit to $60,500.
In addition, encryption technology analyst Tuna KAYA said that Bitcoin’s support level is at $56,500. If this point cannot be held, Bitcoin may drop to $50,000 to $52,000.
Bitcoin is back at the 56,500 support level. RSI is at the bottom. If it holds here, this will be a Double Botto. This situation has made new buyers turn to the market. The new uptrend strengthens. If we lose 56,500, the 50,000~52,000 band may come to the fore. This is something we never want to happen.
