Today, Wednesday, the Bitcoin and the cryptocurrency market are mostly stable. Although, the majority of coins have experienced a minor drop. The market capitalization of all cryptocurrencies increased by 0.6% to $1.02 trillion. The current challenge is getting the cryptocurrency market cap to $1.10 trillion.
Further, there is a long-term negative consolidation in the price of bitcoin. The price has been moving upward over the last few hours and is aiming for $21,750. In order to further reduce the price, the vendor searches for new participants.
According to Bloomberg Analysis, the moving average convergence divergence (MACD) indicator has flashed a warning for the price of Bitcoin. The MACD has turned negative, which some analysts interpret as a warning indicator that pressure on Bitcoin may persist.
The recent dip has also caused Bitcoin to drop below its daily moving average (MA 50). The U.S. dollar, which just rose to its highest level in more than a month, maybe another obstacle for Bitcoin. Bitcoin and the DXY Dollar index have consistently had a negative correlation.
As a result of risk aversion on international markets brought on by worries about the Federal Reserve’s tightening monetary policy, Bitcoin saw a sell-off on Friday and dropped to a low of $20,782, losing more than 11%.
Conclusion
Following the surge, the price of bitcoin has fallen, exposing several fundamental drawbacks that were previously difficult to perceive. Retail investors are not as influenced by the market as anticipated, as evidenced by the run-up and subsequent drop from $25,000.
Over the past week, there has been an increase in the selling pressure on bitcoin. This comes after the price fell back to $21,000, sending markets into a tailspin. The loss has undoubtedly negatively impacted the attitude in the cryptocurrency market, which has now dipped deeper into the dread category on the Fear & Greed Index.
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Source: https://coinpedia.org/bitcoin/will-bitcoin-bearish-trend-continue-for-long-heres-what-technicals-hint/