The value of bitcoin has been dropping at an alarming rate recently.
The price of bitcoin has steadily dropped below the 200-weekly moving average, and it is showing no signs of slowing at a level below that average (WMA). The value of the coin has decreased by more than 14 percent in the past week, and it is currently trading at a price of $21,160.77.
The BTC Bears Have Returned to Town
The existence of bulls in the preceding weeks was responsible for the price of BTC climbing to approximately 25,200. In spite of the catastrophic blow delivered by the bearish cryptocurrency market, its value maintained its position as the new all-time high for more than two months. The upward trend of the price, on the other hand, was unexpectedly reversed this week. The bears have returned, and as a result, the entire trend has been reversed.
The price of bitcoin has moved away from the zone where it was considered to be overvalued. Earlier this week, as a result of this movement, the price took a step back from its immediate level of resistance. In addition, it is not unheard of for whales and other long-term investors to liquidate their assets at some point. During this brief period of selling, Bitcoin experienced a decline and traded in a range between $23,000 and $24,000.
The prices of alternative cryptocurrencies and other cryptocurrency tokens have all dropped in tandem with the price of Bitcoin. As the downward trend in prices continues to gain momentum, the cryptocurrency market as a whole is currently red. The mood of the market currently is pessimistic. This is demonstrated by the fact that the Fear and Greed Index for the cryptocurrency market went from 47 to 30 in the past week.
Only after pricing of Bitcoin has been driven down by the sell-off, it is anticipated that the bulls will withdraw their support. It seemed as though the bears had control of the trending pattern. The price is less than the 200-weekly moving average of $23,000 that it would cost (WMA). Significantly, if the bears are successful in their efforts, the price may go below $21,000.
Price Fall for Bitcoin
Recent events have shown that the MVRV 7-day Detrend Oscillator is exhibiting a negative divergence flow in relation to the price pattern of BTC. A pricing pattern like this one suggests that prices will be going down in the near future. As a consequence of this, there is still the possibility that the price of Bitcoin may fall below the range of $21,000 to $20,000.
The success of the cryptocurrency market might also be attributed to other causes. The surge in popularity of cryptocurrencies has been dealt a fatal blow as a result of the Federal Reserve's plans to significantly increase interest rates over the next few months. A significant amount of selling pressure, in addition to currency inflows, are additional elements that are contributing.
The current price trajectory of bitcoin has sparked the opinions of a number of crypto industry specialists, who have been quoted on the topic. BigCheds, Crypto Tony, Michael van de Poppe, and Crypto Birb are among the individuals who have forecasted that the price of bitcoin will drop below the mark of $22,700 in advance. They believe that the 200-WMA will contribute to an increase in the level.