There is a dramatic backward sliding movement from the number one cryptocurrency; Bitcoin has been shading off value consecutively for the past few days. The BTC price has gradually reached a trading level that cuts below the 200-weekly moving average (WMA). With its drastic trend in the south, the token has lost almost 9% of its value in the past 24 hours.
In the previous weeks, BTC witnessed the presence of the bulls that surged the price to over 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. The bears have reappeared, and the entire trend is flipped upside down.
Bitcoin price has moved against its overvalued region. This created retracing from its short-term resistance level within this week. In addition, there are observations that whales and other long-term holders dispose of their holdings. This sudden sell-off was as BTC dipped and traded between $23,000 and $24,000.
Not only did the BTC price drop, but altcoins and other crypto tokens also followed the downtrend. The entire crypto market has been red as the negative price pattern deepens. The market sentiments are now negative. This is indicated by the crypto market Fear and Greed Index, which dipped from 47 to 30 during the week.
The retraction of the bulls is eminent once the sell-off cuts down the BTC price. Hence, the bears emerged to control the trending pattern. The price is below the 200-weekly moving average (WMA) of $23,000. With the presence of bears, the price drop could get below the $21,000 level.
Analysts Opinions On Recent Bitcoin Price Plunge
The BTC price pattern recently has a bearish divergence flow in the MVRV 7-day Detrend Oscillator. Such a price pattern speaks of a future drop in price. Hence, there’s still the possibility of the Bitcoin price dipping below the $21,000 to $20,000 region.
Other factors have influenced the overturn of the crypto market performance. The Federal Reserve’s intention of spiking interest rates in the upcoming months dealt severe blows to the cryptocurrency trend. Also, exchange inflows and excessive sell-off pressures are contributory players.
Some crypto analysts in the space have aired their opinions concerning the recent price trend of Bitcoin. These include Crypto Tony, Michael van de Poppe, BigCheds, and Crypto Birb, who predicted the BTC price dropping below the $22,700 mark early. They believe that the 200-WMA will contribute to the new level.
With the BTC’s short-term resistance now at the $25,000 level, investors have the buy-the-dip opportunity. But most analysts are hopeful that Bitcoin will still climb from its low levels.
Featured image from Pixabay, Charts from TradingView.com