The US dollar bitcoin exchange rate fell below $ 4,000 on Tuesday, prolonging losses in the night trade to a minimum of three weeks of $ 3,781.

At the time of the press, the cryptocurrent is trading at levels of $ 3,844, a decrease of 25% from the record of $ 5,000 reached on September 2. Perhaps more specifically, month after month, the BTC has now died to death for the first since June.

Rumor has it that Bitcoin feels the pinch of speculation that the Chinese government is cracking down on trade. Some others accuse the biting attack of JP Morgan CEO Jamie Dimon against the bitcoin for the price crisis observed today.

But while these events may have factors, they do not explain current market activity.

The news that China plans to ban trade has been in the air since Friday. Following a $ 4,000 drop over the weekend, BTC regained its balance as the Chinese government kept the mother on the issue. The experts rejected the idea that a ban on interchange would be negative in the long term for bitcoin while the over-the-counter market would continue to flourish. Thus, Bitcoin regained its bid and moved to $ 4,350 to $ 4,380 during the first two days of the week.

Meanwhile, the negative comments of JP Morgan CEO Jamie Dimon on bitcoin are hardly surprising.

Investment banks have always criticized cyrptocurrencies. In addition, JP Morgan is not a bigwig crypto, so Dimon's comments are a big hit across the threads, but it would be difficult to interest the bitcoin traders.

The euphoria is not reached

In analyzing current markets, it is important to remember that bull markets are based on fear and skepticism, while large markets are the product of extreme euphoria.

Most investment banks have been and always call to bitcoin a "scam". Every week we see stock market specialists between the bitcoin rally and stock market bubbles over the past 100 years. Thus, despite the 416% gains recorded since the beginning of the year in bitcoin, it is prudent to say that there is no sign of euphoria.

In fact, the first bitcoin sign that was approaching a major summit would be the investment banks that were embarking in the cryptocurrency freight train.

More likely, then, that's what we're seeing now, it's a technical withdrawal. After a staggering rally, investors are looking for reasons to profit.

Technical Outlook: Watching $ 3,000

Daily Graph

The chart above shows a bearish decline in RSI divergence on September 2 was followed by:

Symmetric triangle degradation
Distribution of the head and shoulders
The symmetrical triangle, which may also be referred to as a coil, usually forms during a continuous trend. The pattern contains at least two lower vertices and two lower lower levels.

The "head and shoulders" is an inversion pattern which, when formed, signals a safety (in this case, bitcoin) is likely to move against the previous trend. The H & S cut [line drawn from the bottom of the left shoulder and the right shoulder] was violated. A break below the neckline confirmed a reversal of bullish trend to fall.

Scope for a $ 3,000 decrease: The H & S breakdown opened doors for a $ 3,000 sale, which is the measured size method [the difference between the head and shoulder peak ($ 5,000) and neckline support ($ 4,000) is subtracted from support for the cleavage.

The corrective rally will be capped at around $ 4,450

4-hour chart

Stochastics and the RSI are sold, which is a condition in which the price of an underlying asset has decreased significantly due to excessive market reaction or panic selling. It is usually followed by a corrective rally.

Thus, a brief correction of $ 4,150 [the former neckline support can now be a resistance] could be seen.

Only a break of more than $ 4,400 [the resistance offered by the trend line drawn from September 2 and September 8] would revive the upward view.

Disclaimer: This article should not be taken as an investment advice and is not intended to provide it. Please conduct your own thorough research before investing in any cryptocurrence.