Bitcoin may not be established yet, at least compared to the bear market in 2018. In 14 days, BTC lost 30% of its value. Worse still, support failed at $ 20,000 and the asset fell towards $ 19,000 for a few hours.
Bitcoin collapse may not be over
This is the first time since the creation of this crypto-currency fall below its highest value found in a previous positive cycle. For many investors, speculation is due to the massive decline in the asset, the current market situation as well as a feeling of fear for the future of cryptos. Bitcoin had finally reached about $ 19,000.
However, a famous trader called Il Capo of Crypto on Twitter went to compare the current fall compared to the fall of 2018. So for the latter, $ 30,000 BTC support is very similar to 2018 $ 6,000 support. So we can see through this data that it does not seem to be complete and that the bottom may be much lower.
By comparing these two graphs, we can see a bearish hidden variance. It is a technical analysis that occurs when the high price oscillates as the high oscillator does higher. This usually happens when the market is down and suggests that it will continue to decline continuing the downturn.
The fear and greed index has risen 11 points in recent days following a small BTC rally of under $ 20,000. In spite of everything, we still find ourselves in an extremely fragile and anxious market of the current situation.
At the time of writing this article, Bitcoin is trading at $ 21,031 with a 2.19% increase in value over the last 24 hours. Despite everything, over one week, the price is still in the 0.16% negative. We need to be patient and continue to look at the situation carefully to see if the BTC has reached its bottom and start to rise or if the worst is yet to come.