Bitcoin Сontinues to Fall, Should We Wait for the Altcoin Season?

The situation on the cryptocurrency market has worsened last week: Bitcoin exchange rate continues to fall, accordingly, the overall capitalization has decreased. Nowadays the price of one BTC is more than $8,000, while previously it did not rise above $7800. 

Bitcoin for $7200?

In fact, there are no new active buyers, which can break the bearish trend on the market, so there are no signals to buy BTC today. Highly likely, the price will continue to fall to the strong supporting level of $7200.

The chart, also, shows the strongest Fibonacci level — 0.618, after which it will be possible to form a bullish divergence on the RSI indicator. When this value will be reached, you will have to closely monitor the reaction of prices in this area and the formation of trading patterns. This zone is interesting for its corrective upward movement after updating the local minimum. In addition, traders' stop orders with open long positions are located here. 

What is happening with the altcoin market?

It should be mentioned that altcoins occupy more stable positions compared to bitcoin. The chart below shows the formation of an ascending triangle, which increases the chances of a decrease in the share of BTC dominance on the market.

It should be mentioned that Ethereum will begin to achieve a new goal — an indicator of $ 186 in case of breakdown of the emerging price corridor. The ETH / BTC chart shows that it will be the beginning of the altcoin`s uptrend. However, the remaining digital coins will follow bitcoin, if it will fall down. 

What should you do?

• Nowadays it is better to act in accordance with the development of events and to expect a decrease of BTC price to $7200, then — to choose the best points for entering the market. It is important to understand that it applies to the purchase of both — bitcoin and altcoins.
• Another alternative is to expect a rapid increase of BTC rate, then — to enter the market on small corrective movements down. 
• In addition, you can wait for the breakdown of the ascending triangle on the altcoin / bitcoin charts and fixing of price above the established level — 0.022 BTC for one ETH.

As you remember, earlier we wrote that the level of Bitcoin dominance began to decrease. If you want to know about altcoin`s chances to replace bitcoin, read this article.

Neironix does not forecast bitcoin. If you need fresh forecasts of the rate, consult a specialist.