With changes in token prices, the bitcoin and crypto markets are always on the move. It is the back-and forth movement of prices that allows for the speculation nature of these assets.
Some cases could prove favorable to investors, especially when there are bulls on the field. However, when the bears play, many tables can be turned upside down by loss of funds or money.
Extreme winter characterized the cryptocurrency market in 2022’s first half. This situation was made worse by the loss of Terra, an algorithmic stablecoin and its native token, LUNA.
For almost all digital assets, there have been large losses in the millions of dollars. Bitcoin and other crypto tokens don’t seem to keep track of the movement they made on their journey south.
However, entering the year’s second half created a new phase for the leading cryptocurrency. BTC prices began to increase in July and August. However, the price increase is temporary as bears once again control the crypto market.
During the past week, the crypto market witnessed more crumbling of most coins’ prices. As the days pass, the downtrend is becoming more dramatic.
The cumulative market cap has seen a dramatic drop to $1 trillion. Surprisingly, the market cap saw a plunge of 50 billion just one day.
Bitcoin MVR Ribbon Indicator
The story for Bitcoin is becoming more dire as an indicator predicts a future price decline. It is made up of 3 moving averages, (MAs), and called the Bitcoin MVR Tripple Ribbon. These moving averages (MAs) are the 10-day, 15-day and 20 day moving averages. It’s used to determine the average BTC prices for different periods.
An analyst at CryptoQuant shared his insights into the indicator’s potential impact on Bitcoin price. According to the analyst, the indicator provides signals foreshadowing Bitcoin’s fall. According to the analyst, there were five signals that showed Bitcoin’s weakness and sell-off this year. BTC sold at an average of around 30% this year.
Over the past eight days, Bitcoin’s price drastically turned to the south. Over the past eight days, Bitcoin’s price has fallen almost 14%. Bitcoin’s price is currently hovering in the $21,000 range.
Remember that BTC reached a two-month record of $25,200. However, the token plunged to $24,000 immediately. The token continued to fall from last week through the current week, but the trend seemed to be continuing.
This indicator is poised to complete a crossover shortly. A similar move in the past resulted a 30% drop. This could lead to Bitcoin prices falling below the $20,000 mark.
Featured image taken from Pixabay. Charts taken from TradingView.com