Over the past 14 days, the price of bitcoin has lost over 30% of its value. Moreover, the cryptocurrency fell below $20K, the previous all-time high reached in the 2017 cycle.
This is the first time in the history of the cryptocurrency that it falls below the all-time high reached during the previous bull cycle. The massive drop, constant selling pressure, and predominantly negative market sentiment have led many to believe that the bottom has already been reached for BTC.
However, a popular trader pulled out a historical analysis, according to which the worst may not yet be over.
- Popular cryptocurrency trader and analyst head of crypto took to Twitter to compare the current decline and the fall in 2018.
The $30k support was very similar to the $6k support in 2018. As soon as it broke, the surrender phase began, but if we compare both, we can clearly see that it has not yet ended.
Funding rates also confirm this.
- The chart above shows a hidden bearish divergence.
- This is a popular technical pattern that occurs when price makes a lower high and the oscillator makes a higher high. This usually occurs during a downtrend and suggests that prices are about to drop lower in the continuation of the downtrend.
- At the same time, the cryptocurrency fear and greed index has increased to 11 points in the last couple of days after a slight recovery, when BTC was able to return $20k after falling below this level.
- However, this is still “Extreme Fear” territory.
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Credit : cryptopotato.com