The Bitcoin is falling significantly after skyrocketing to highs recently; sales may become more serious.

As early as Wednesday, it seemed that Bitcoin is on the verge of a serious correction, which is confirmed by technical charts. On August 15th, the market started covering long positions in the Bitcoin pairs and continued on August 16th morning, then it sharply turned in the opposite direction. After reaching the high at $4,430, the BTC/USD pair lost more than 38% and as of today, August 18th, it costs $4,309. Obviously, the market is going to continue selling.

The technical picture assumes that “bears” may push the Bitcoin price towards the area between $3,690 and $3,730. This forecast is valid for the next couple of days. However, if they don’t become more active until the end of the week, the target for “bulls” will be at $4,234 USD.

From the fundamental point of view, the market conditions for the Bitcoin right now are quite neutral. The global macro statistics, which is being published nowadays, is mostly pretty mixed and neutral, but not stressful. In this situation, investors do not require any independent assets. However, this is valid for the present moment. In the next two or three months, the demand for “safe haven” assets is expected to increase, thus pushing the Bitcoin to new highs. It seems like one should wait a bit before opening a lot of long positions.

We remind you that the Bitcoin is the world’s capitalization leader, which is $69.06 billion. The next ones are the Ethereum, $27.42 billion, and the Ripple, $6/15 billion. When trading cryptocurrencies, one should remember that the cryptocurrency market may get highly volatile very quickly and after skyrocketing, the currencies may start plummeting even faster.

Author: Dmitriy Gurkovskiy, senior analyst at RoboForex