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.
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.
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.
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.
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