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Bitcoin Down: Scare or change of trend?

4


Bitcoin has fallen again below USD 10,000, however many wonder if it is only momentary or if it represents the beginning of a trend change that will continue again for weeks. For example, last Sunday he lost USD 300 in one hour.

Having broken this important position, the world’s largest cryptocurrency is going through a phase of selling pressure, which is expected to be corrected soon. At a time of pressure, the price of Bitcoin is located at USD 9,924 with a market capital of USD 180.86B. The latter represents an increase of 2.43% compared to yesterday.

, Bitcoin Down: Scare or change of trend?, Forex-News, Forex-News
Bitcoin price chart in the last week

Also, Bitcoin was in red yesterday, in conjunction with the cryptocurrency market in general. The latter is appreciable in the previous graph. However, that fall was less than 3%. Despite this event, BTC’s dominance in the market is undeniable.

, Bitcoin Down: Scare or change of trend?, Forex-News, Forex-News

What indicators can we use to answer the initial question?

If we take into account the Relative Strength Index (RSI), we will notice some interesting things about the price of Bitcoin and we can approach a more real answer. This indicator is a kind of momentum meter, and evaluates the strength of Bitcoin price performance over a given time.

, Bitcoin Down: Scare or change of trend?, Forex-News, Forex-News
Bitcoin RSI chart

The RSI indicates that there is a tendency of variation that is getting closer to the channel, this would mean a continuation of the upward trend. However, if BTC fails to maintain an RSI 50 level, and if the price falls below USD 9,700 until it reaches USD 9,400 we would be close to an important resistance zone. This would end the upward trend in the short term.

Another clue that we can notice is the Fear and Greed Index, which is currently in neutral (51). This means that the market is waiting to see if there is a rally or event that drives them to pursue a more defined position, either towards greed or fear.

Any jump in the price of Bitcoin above USD 10,000 can set the next target at USD 11,000. But it is not as definitive as it was a few days ago. Precisely from this last one Tone Vays talked a few days ago on his YouTube channel, and here we leave you more details about it.

Bitcoin: Other data to consider

Bitcoin fell below its 20-day moving average yesterday. Another thing of critical importance is that Bitcoin may have broken its 14-day trend, since the momentum of the trend seems to be diminishing. Bitcoin volatility has skyrocketed in the last two weeks in relation to the last 30 days, which technical operators will want to observe.

Something that must be taken into account soon is to observe the strongest trend in the last 30 days. During that period of time, the price of Bitcoin has been rising, specifically in 9 of the last 14 days.

conclusion

For the time being, this seems to be just a scare, but it is on the verge of being able to consider a short-term trend change. The market is neutral and expecting to see how to manage its investments. For the moment, we recommend not to rush into making decisions and understand that certainly the volatility that characterizes this market will always be present, but at the moment it is not so wide as to affirm that it is a definitive trend change.

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Degree in Liberal Studies from the Metropolitan University. Lover of innovation and believer of technology for the future.



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