Let's make the point of DGB situation
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Today we are going to talk about DigiByte US dollar and DigiByte Bitcoin and the crazy thing that has happened yesterday to all cryptocurrencies
The price of Bitcoin and all altoins has dropped compared to the value of the major FIAT currencies.
What happened yesterday is really singular to me. I mean I am NOT a financial expert and I’m not an expert in politics and repercussions of events.
Yesterday I read what Bitcoin Twitted regarding corona-virus and the inflation that it would generate, stating that Bitcoin was designed exactly for situations like this (because it tends to be anti-inflationary).
Despite Bitcoin’s statement on Twitter, we have noticed that it dropped really badly and allegedly corona-virus is somehow responsible for this…
To be honest I am not completely sure why should corona-virus affect assets of value such as gold, which dropped as well.If people are fighting over toilet paper in the supermarkets, wouldn’t it make sense that gold and other assets that have value would be bought as a backup in case of an economic crisis?
I must admit again, I am pretty ignorant about the topic… there may be a reason that I cannot see…
If you remember, I am calling the Bitcoin’s bear market since August 2019 as I have seen signs of weakness and just before yesterday I mentioned that Bitcoin could quite well drop below 1000 dollars.
We know that DigiByte follows Bitcoin almost religiously and therefore I was either wrong with Bitcoin or I was right with both when I was pessimistic about an increase in value.
Let’s do the analysis though!
DigiByte US Dollar technical analysis
We don’t have access to a long time in the past in the charts on TradingView, therefore it is impossible to find IF there are previous lows at this price range, but I don’t remember having seen any when we could check DigiByte on Poloniex.
This prevents us from determining a support price for DigiByte. What I can do is drawing a line at the lowest low reached yesterday and at its closing price.
The first line is at $0.00308 and the lowest is at $0.00155.
As you can see, the price yesterday went really down and if you were smart or fast enough to buy, I doubt it would really go any lower than that (but everything can happen).
We must now understand that DigiByte will not rally all of a sudden and we should expect a long time (we are talking weeks or months) with DigiByte either going sideways or dropping…
Because I am not sure to be able to make daily updates between Saturdays and Mondays, I invite you to join my Facebook group where I do give advises on where and when to enter a trade.
In the daily view of DigiByte we can see the formation of a Bullish Harami or even a Piercing Pattern by the end of the day, but would this be enough for us to believe that this is the bottom?
We can certainly expect a rally now, but probably in the area of $0.004 or something more, but it is extremely unlikely for DigiByte to go back to $0.005 for a while… It is more likely to see it dropping now.
DigiByte Bitcoin Technical Analysis
Where we should switch our focus now is our attention to the Bitcoin pair (DGB/BTC) as investors would more likely (if they don’t already have) move their Bitcoin into some worthless altcoin such as DGB so that during the Bitcoin downtrend they will be able to increase the amount of Bitcoins in their wallets without adding more from their FIAT money.
If we check the charts we can notice that several days ago two Hammers appeared and they provided support since. Today we are noticing a Piercing Pattern that started with a gap (or window if we want to use the Japanese term) at the opening price of DGB/BTC, that is exactly what I referred to when I said we should expect it to be dumped, but as you can see, lots of smart money are entering now… Are you the ones who are going to make or lose money in this market?