beststocks.com
Bitcoin (BTC) has been experiencing a downward trend for the past few weeks, with the price currently sitting at $3,904.78 per coin.
A significant correction has been the topic of discussion in recent weeks, and it looks like the bears are gaining momentum. Bitcoin prices have been steadily declining for more than a year, with no significant spikes in the price since December 2017.
On Wednesday, Bitcoin BTC fell below $40,000 and closed at $38,814. Unfortunately, there is no forecast yet on when bitcoin will rise again. The Bitcoin industry is still growing, but investors are less confident in the currency. When trust starts to decrease, many investors will begin to sell their Bitcoins which will cause the price to drop even further as supply outnumbers the demand.
Technical indicators in the weekly time frame are mixed but leaning bearish. Oscillators MACD and RSI show signals indicating that bears have become more potent than bulls.
For example, RSI dropped to a 49-signaling weakening trend on Feb 7th($32523); so far, this week’s price stock appears to be confirming these trends: On Feb 8st (32683), we can see that most market participants were selling off at higher prices rather than buying up low as they had done over past several months; recent volume data indicates most increased sell pressure since Oct 2018 when the price was closer to all-time highs around $4000 level.
Movement in the short term
Finally, the two-hour chart shows that the two downward movements so far have a 1:1.61 ratio. As a result, the pattern will likely be completed, and a reversal will occur.
The $39,600 and $40,600 levels are expected to function as resistance if a reversal occurs. At this time, however, there are no signs of a longer-term bullish turnaround. As a result, at these prices, it appears that BTC will be rejected once more.