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This is mostly due to the fake news about the collaboration between Litecoin and Walmart. Information about this appeared on the official Litecoin Twitter page. However, after 15 minutes, this tweet was deleted, but it had a strong impact on the market.
So, the price of Bitcoin in 15 minutes jumped by 5% and reached the level of $47,000. In the next 30 minutes, the chart fell even more – by 7.5%, reaching $43,300. Almost identical situation occurred on all other coins. This is an extremely high volatility, even for the crypto market. Once again, this proves the fact that the crypto market is still young and can be easily manipulated.
Let’s take a look at the Bitcoin chart and see what changes have occurred as a result of this news:
In the 4-hour timeframe, you can clearly see that the Japanese candlestick has formed two large wicks at the bottom and the top. Given the fact that it happened because of fake news, these long shadows can be ignored.
With this in mind, we saw that a falling wedge pattern was formed on the chart. As a rule, it indicates a reversal and the next growth of the asset price. If Bitcoin can break through the downtrend line from down to up, which is at $46,000, then the chart could rise to $49,000 quite quickly.
After yesterday’s sharp drop by 7.5%, the price came to $43,000. Here we saw a strong reaction from buyers who quickly began to buy back this fall. This proves once again that the $42,000 – $44,000 range is the largest support level to date.
We also pay attention to the indicators on the 4-hour timeframe. It is obvious that the MACD has finally reversed after the September 7th fall and is showing an uptrend. A similar situation can be observed on the RSI. The movements of both of these oscillators diverge from the chart that has a decreasing structure in the last 5 days. This means that convergence has formed. This pattern indicates the fact that the price of the first cryptocurrency should soon reverse and show an upward trend.
Earlier we said that we were waiting for a small fall to the support level and a subsequent reversal. Yesterday, the first part of our prediction came true and now Bitcoin has good potential for new growth.