The week in the market has been «fun-filled».
Uncertainty and panicky sentiments have reigned in the market. The overnight flat ended with a slide. The local minimum is $4,210 — and we wrote about it in our previous review. Technically, everything points at a continued slump, so we can’t rule out attempts to test the $4,200 — $4,000 support levels.
Judging by the intra-day chart, we cannot rule out a false puncture in the channel, but at the moment, everything points at a continued slide. By the way, Fibonacci retracement levels of 0.382 and 0.618 may be realistic targets in case of correction, and they correspond to the resistance levels, into the bargain (the range above $5,000 and $5,600).
But there are still some optimists in the market, Tom Lee, for example. In a talk on CNBC he said that the Bitocoin plunge was but a temporary trend.
Bitcoin plunged 16% Tuesday and fell as low as $4,200.22.
— CNBC (@CNBC) November 20, 2018
In the talk he accused the SEC of creating a panic in the market, as it carefully reviews many projects. He believes that it puts a strong pressure on the market. For example, the SEC has recently blamed EtherDelta with trading unregistered securities. We will prepare a detailed review of cryptocurrency market background news in Monday, but meanwhile you can read about the causes of the market drop.
He noted that the market decline was a global trend and there is a grain of truth in his words.
The 2018 outcomes will, most likely, prove that keeping your money in cash and not investing in any assets is the best option.
Global funds and bonds, raw material commodities as well as S&P500 Index have been declining.
Support at $4,200 and $4,000 levels may contain the downward trend. However, we cannot rule out a further slide.
Resistance at the ascending movement is $4,750, $5,000 and $5,600.
The best decision would be to wait and see. That’s why just sign up for Hitecher and you’ll always keep abreast of all cryptomarket and technology news.