The number-one cryptocurrency is experiencing a sharp downward slide. Bitcoin has been losing value for several days. BTC’s trading price is now below its 200-weekly average (WMA) and has fallen steadily. Due to its dramatic trend towards the south, almost 9% has been lost in 24 hours.
BTC saw the appearance of bulls in the weeks before, which pushed the price up to more than 25,200. This value remained BTC’s new all-time high for over two months after the devastating blow of the bearish crypto market. But the progress in the price is suddenly cut short by this week’s performance. This week’s performance has brought back the bears and turned upside down the whole trend.
Bitcoin’s price moved against the region that is overvalued. The Bitcoin price has retraced from the short-term resistance area within the past week. There are also observations of whales selling their long-term holdings. As BTC traded between $23,000 to $24,000, this sudden selling was evident.
The BTC’s price dropped, and altcoins as well as other cryptocurrency tokens followed this downtrend. As the bearish price trend deepens, all crypto markets are now red. Now, market sentiments tend to be negative. The crypto market Fear and Greed Index dropped from 47 to 30, indicating this.
Once the BTC prices drop, the bulls will retrace. The trending pattern was dominated by the bears. Below the WMA of $23,000, it is lower than 200 weeks. A bear presence could cause a price decline below the $21,000 mark.
Analysis of the Bitcoin price plunge
Recently, the BTC price pattern showed a bearish divergence in the MVRV-7-day Detrend Oscillator. This price pattern indicates a possible future price drop. Hence, there’s still the possibility of the Bitcoin price dipping below the $21,000 to $20,000 region.
There are other factors that have contributed to the decline in crypto market performance. The Federal Reserve’s intention of spiking interest rates in the upcoming months dealt severe blows to the cryptocurrency trend. Exchange inflows, excessive selling pressures, and other factors are also contributing players.
Many crypto analysts from the industry have expressed their views on the Bitcoin price trends. Crypto Tony and BigCheds were among them. They also predicted that Bitcoin would drop below $22,700 early. These people believe the 200-WMA will help to bring the price up.
With the BTC’s short-term resistance now at the $25,000 level, investors have the buy-the-dip opportunity. Analysts are optimistic that Bitcoin will climb again from the low levels.
Featured image taken from Pixabay. Charts taken from TradingView.com