Last Two Times This Happened Bitcoin Crashed 75%

There is a generally bearish mood around Bitcoin. This comes after the coin failed to close above local resistance. Bitcoin has for weeks now failed to set support above $9.8K. Bulls are exhausted and this is showing. Two of its bearish indicators have just flashed. With these two, the asset could see a more than 70% crash. Why?

History never repeats in the crypto market, it correlates and sets a general trend. In the current case, investors should be worried that the last time, these indicators were involved, bitcoin crashed by 75% and 85% respectively.

The first concerning indicator is a falling trading volume. For four consecutive months, the volume has been falling. This weekend, Bitcoin is only reaching highs of $16B. This is at per with the volume seen earlier in the year when the market was fully bullish and volume was in the $50B highs.

Read: Bitcoin Volatility Hits 8 Month Low, Storm’s Coming

The other is that Bitcoin is trading just below the 3-year resistance line. As shown by this analyst, the last time this happened, Bitcoin crashed by 75% and 85% respectively.

Read: Trading Legend Jim Rogers Thinks Bitcoin Will Go To Zero Because Of Guns

A more than 70% crash from current levels would push Bitcoin to the $3K lows. Admittedly some bears have been calling for these lows. But the bulls have set strong support at $6K with miners further defending it to ensure profitability.

Bitcoin Price Update

After a dramatic week, bitcoin has managed to get close to where it was at the start of the week. For a few days ago this week, the coin seemed to have final getting set for a higher stagnant point. This is after getting to as high as $9670 on a steady elevation for 4 days. Unfortunately, the fact remained bitcoin is highly volatile that at the time of press it’s priced lower than the start of the week.

At $9100 today the coin is slain a good $200 from a week ago. However, there is a likelihood bitcoin will recover the$200 considering PayPal is expected to venture into crypto. PayPal and Venmo have 325M users and with the rumor that they are looking for crypto engineers, this could happen.

Read:Rich Dad Poor Dad Author Criticizes Gov’t Bailouts, Predicts Bitcoin Will each $75,000 In 3 Years

However, they have not specified which coin they are going to list. This might not help with the bitcoin crash, or even recovering the $200 as a new week starts.

 88 total views,  2 views today

Share

Author: Christine Ann

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.