This hasn’t been a good week for Bitcoin.
Following a sharp fall on Tuesday of last week, when the price of Bitcoin dropped from almost $9,700 to $8,500, the cryptocurrency has failed to recover ever since.
After falling to $8,000, the bulls tried to gain some ground, pushing the price to $8,400 per coin. But, by yesterday, the bears had had enough it seems, and an intense downward pressure on the price has confirmed that, for now, the bears are the ones in charge.
Bitcoin is currently hovering around $8,190, according to data from Trading View.
What’s more, this week marks the first time in a long time that Bitcoin has fallen below the “EMA 200,” which traders understand is not a good sign. (EMA stands for exponential moving average—a measure of an assets performance over a given time period, in this case, the last 200 days.)
The last time this happened was in July 2018, when the price of Bitcoin slipped below $7800, starting a bearish streak that concluded on April 2, 2019 (when prices surpassed the EMA 200).
In short, today, markets are moving at prices below what would be considered “normal,” taking into account the price of Bitcoin over the last few months.
Be the first to get Decrypt Members. A new type of account built on blockchain.
In addition, it’s also important to be aware of the possibility of a “death cross” in which the behavior of prices in the short term falls below the long-term trend. This would mean that traders are willing, on average, to sell below what has been the natural price movement (which in many cases confirms a bearish trend).
However, there is still some light at the end of the tunnel. Assuming there’s no funny business (some kind of manipulation or other strange event that’s, in fact, really not so strange in the world of crypto trading), this is a trend that can be reversed.
The Relative Strength Index (RSI) is at minimum levels, which means that sellers are currently willing to sell at meager prices even if this represents losses. Generally, this could lead to an increase in prices because those who shorted BTC would want to go long after buying the dip.