The Bitcoin market started the week on a positive note, with the market leader reaching a high close to $11,000. However, a quick turnaround is unfolding as investors maintain a fearful stance on the cryptocurrency market’s macro outlook.
Bitcoin (BTC) has been on a slow decline over the past month after closing on a 2019 relative high of $13,100 in late June. The digital asset has failed to regain significant support levels, while the Bitcoin price has been getting rejected lower.
As previously noted, Bitcoin’s price action within the triangle was set to continue either sideways or with a breakdown. With the plunge to the $10,000 range on Aug 21, Bitcoin is further reinforcing the bearish stance from investors.
Subsequently, BTC/USD may plunge under $10,000 and even explore last week’s lows in the $9,600-$9,400 range.
The Fear & Greed Index has also been showing “extreme fear” from traders after recovering slightly from similar levels earlier this week. As the indicator’s website notes, “extreme fear” is a sign that investors are too worried. While extreme fear in the markets could be a good buying signal, there might be further downside before the price starts recovering.
The Moving Average Convergence Divergence (MACD) has been sending a downside signal for some days already. More importantly, the MACD is painting a similar pattern to the one in July — which could hint at lower price levels.
The daily Relative Strength Index (RSI) is slowly down-trending but hasn’t reached over-sold status, which could see sellers push the price even lower.
What do you think of the current price action? Do you lean towards a bearish continuation or a bullish recovery? Let us know in the comments below! While you’re at it, sign up with just an email address on StormGain, an exchange that offers a multiplier of up to 100x with the lowest fees!
Disclaimer: This article is not financial/trading advice and should not be construed as such.