Cryptocurrency Market Analysis [March 2 Issue]
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Bitcoin has fallen sharply since last week
and dropped from around 1,100,000 yen to
as low as 930,000 yen at one point
before recovering to around 950,000 yen.
Bitcoin chart
Of the chart, the top horizontal line around 1,050,000 yen
is the line where there is strong buying pressure.
When it was broken downward, it suddenly fell sharply.
This shows that when a strong line is breached,
the price often moves significantly in that direction.
There is a high possibility of such a move.
The current price level can also have a horizontal line drawn at that point.
Points where you can draw such horizontal lines include 85万円 (third from the top)
75万円 (fourth from the top)
These are points where horizontal lines can be drawn.
When considering buying Bitcoin,
refer to this red line
and target prices where the price has settled.
It’s better to aim for price ranges where it has stabilized.
The red line often sees the price pause once as it drops,
but it is better to study areas where the price has confirmed support and is moving steadily.
Currently, the price has somewhat retraced from around 93万円.
Bitcoin 4-hour chart
However, consider buying when the two horizontal lines on the chart break upward.
Bitcoin halving is expected to drive the price up
The price of Bitcoin that rose from the days after the halving
to the 1,100,000 yen level
and up to 1,100,000 yen,
from 750,000 yen on January 2,
over 40 days.
It is difficult to determine how far this drop will go,
but by using horizontal lines as reference,
buying decisions at points where the price stabilizes above the line
seem advisable.
There are opinions that a bottom has already been reached,
but
since the price has not fallen long,
it is risky to make a buy decision now.
For example, if investing 500,000 yen,
distribute the funds in increments at key points,
investing 100,000 yen each time to diversify risk.
We recommend this approach.
[Considering Halving and Bitcoin Price]
Bitcoin halving is expected in May 2020.
Let’s look at past halvings.
Bitcoin chart of 2016
About 40 days before the halving,
prices began to rise,
and high prices were reached before the halving.
Then, approaching just before the halving,
prices started to decline.
After the halving, Bitcoin price tends to rise easily,
so there is an expectation that people buy in advance,
in anticipation of a price rise.
This is the expectation that the price will move up as people buy in advance.
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