Bitcoin (BTC) price continues to drop considerably, today is not an exception with 4% losses. BTC has been in a bearish outlook after the recent as it sliced through the $44k congestion zone.
- Bitcoin price slumps 4% on Friday with a bearish sentiment.
- The recent correction in the price is expected to continue.
- BTC tumbles to the five months lows below $40k.
Broader Sell-off in Global market due to risk aversion augmented BTC fall
BTC slipped $40k for the second time since January 10. The largest cryptocurrency slipped nearly 8% to $38,261 in today’s trading session. As per the CoinMarketCap, the digital tokens shed roughly around $ 1trillion in value since November’s ATH.
The US Dollar Index (DXY) remains stable above 95.50 in accordance with the prospects of tighter monetary policy in the US. According to CoinGlass, there have been nearly $600 million in liquidations in the past 12 hours.
On the weekly chart, sellers are now holding near the double bottom. A decisive close below $39k could see the correction up to 23% with lows last seen in July at 30K.
The momentum oscillator, weekly Relative Strength Index (RSI) reads below 50 hints more correction in the price. While the MACD (Moving Average Convergence Divergence) breaks below the midline with bearish crossover. Barring a few bounces back in prices, the overall trend remains bearish for the pair.
On the other hand, if the price manages to get hold of $40K, then a reversal could be seen. BTC could see upside till $50k.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/bitcoin-btc-price-test-weekly-lows-lost-16-since-january-1/