During the week, the price of bitcoin remained in the range of $9800-$9200. Attempts to consolidate above $9800 did not lead to success.
Yesterday, the price of the first cryptocurrency went out of the range through the lower border and tested the strength of the support at $8800. After that, bitcoin returned above $9000 and is now trading in the range of $8960-$9070 for more than 12 hours. The dominance index is 66.3%.
The $9100-$8800 range is too narrow to stay in for long. I expect to get out of it today. The direction of the exit will determine the further movement of bitcoin and the market as a whole.
Fixing above $9100 will bring bitcoin to the previous range of $9200-$9800 with a great prospect of another $10,000 assault. Fixing below $8800 is a move to $8500.
What's in the markets?
In traditional markets, the S&P 500 failed to take 3000, although it came as close as possible to this level. Yesterday, the index corrected to 2948.
Now we see a corrective decline in oil. Asian indexes sank slightly (with the exception of HSI, which fell by 5.63%).
In the us market, retail stocks are rising (TJX, ROST) and medical companies are falling (Boston Scientific, Illumina). This suggests that the coronavirus topic is losing its relevance in terms of its impact on the market.
The arrival of optimism on the stock market is hindered by the conflict between the US and China, which is gaining momentum and threatens to disrupt the trade agreement. But I think that both sides will refrain from decisive actions. No one is interested in an additional blow to the economy.
The cryptocurrency market has achieved record turnover in bitcoin options.
They are probably used as an alternative to selling coins. Options make quotes more resistant to falling.
One of the most significant news this week is the Russian bill "on CFA". It causes an exceptionally negative reaction among market participants, and this is true. If neighboring Belarus after the Decree on the Park of high technologies referred to as "Cryptocoryne", Russia in the case of a law may be worthy of the title "Cryptosample".
What do the charts say?
Yesterday, the price set a minimum at $8815.
This mark coincides with the 38.2% Fibonacci coefficient. And if the movement from the lows of may 10 was an impulse, then to continue the growth of BTC, it is necessary to fix above $8800. If this support is broken, the decline will be deeper.
The main resistance zone is currently $9290-$9300. This level is a confirmation of the continuation of the ascending scenario.
Fixing below $8800 may lead to a decline to $8535 and $8327.
On the daily timeframe, the price is still following an uptrend, so it is premature to draw conclusions about the continuation of the decline.
