Bitcoin made history this week with its 8th consecutive weekly red close. This streak, the first ever of its type, had cemented bitcoin on one the most severe bearish trends. Even though the week is coming to a close, cryptocurrency has yet to see any significant recovery. This suggests that its bearish streak may still be ongoing.
Bitcoin Heading For A Ninth Red Close
Bitcoin trading at a low of $30,000 makes it possible to predict that this week’s close will be in the red. It will likely break the previous record and plunge the market further into bearish tendencies. The bulls are largely out of control, and the bears will be able to drag the market lower for nine consecutive weeks.
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This, combined with increased Fed interest rates has made investors more wary about making financial investments. Thus driving them towards more ‘stable’ investment options. The current market trend of bitcoin not being reversed is because so much money has been left.
Although bitcoin may have been a safety net from altcoin violence, this does not mean the asset has not suffered financial losses. NewsBTC reports that bitcoin is the most successful indice, but the cryptocurrency has fallen 24% since the beginning of this month. Investors remain cautious about this pioneer cryptocurrency because of the price drop.
BTC prices fall to $28,000| Source: BTCUSD on TradingView.com
What the Indicators Suggest
Bitcoin’s 50-day moving mean has been considered a bullish indicator. It is therefore not encouraging that bitcoin’s current trading price has fallen. As an example, bitcoin’s current trading value is $9,000 lower than its 50 day moving average. Bitcoin must not only recover above that level, but it also needs to find significant support beyond $40,000 in order to continue its recovery trend. For bitcoin to reach this level, it would need to be 37% higher than its current levels.
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Although this possibility is possible, it seems unlikely that exchange inflows will allow for such a thing. BTC outflows have exceeded outflows in the last 24 hour by $7.5 million. This shows that the sell-off continues to grow.
Bitcoin will not see a 37% recovery unless the sell-off trend is stopped. BTC will likely touch $25,000 or less before reaching support at $40,000. This is due to the fear-based sentiment in the market.
Featured Image from BBC. Chart by TradingView.com
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