Bitcoin Price Down Over 10%, Sinking farther away from $10,000

After a sideways market all through June, Bitcoin is not doing too hot this month. The past 48 hours have been brutal for the cryptocurrency as it dropped over 10% dipping below the $10,000 level. Why is the price falling? Will we see recovery anytime soon? Let’s dive deeper and take a look…

Why is Bitcoin’s price falling?

As Coindesk reports, a key indicator for Bitcoin has turned bearish. Specifically, the MACD indicator turned bearish first time since December. If you trade based on technical indicators, then these are pretty bad news.

The sideways market last month may have contributed to something called buyer exhaustion. According to Investopedia:

“Exhaustion is a situation in which a majority of participants trading in the same asset are either long or short, leaving few investors to take the other side of the transaction when participants wish to close their positions. Exhaustion often signals the reversal of a current trend because it illustrates excess levels of supply or demand, indicating a market is either overbought or oversold.”

While the trading volume is still relatively strong this month, it’s not stronger than it was the month prior. In order to sustain the bullish run we also need to see an increase in volume, when volume dies down so does the market’s power to make strides ahead.

Another potential reason for Bitcoin’s recent bearish momentum includes president Trump’s recent tweet about the cryptocurrency:

Related Post

We have seen Trump’s tweets move stock markets up and down, and its no coincidence that after his tweet Bitcoin experienced some bearish momentum. However, regardless of Trump’s opinion on Bitcoin, the cryptocurrency will continue to stride along like the honey badger that it is.


Bitcoin Price Analysis And Prediction

Relative Strength Index: The current RSI is at a healthy 55 points. That means the market is neither overbought nor oversold. Most likely the market will continue trading sideways until it can build up more strength for its next move.

Bollinger Bands: The current price of $9463 is within the upper and lower bollinger bands. This means that there isn’t any negative or positive pressure for the market as of right now.

Prediction: Both indicators are showing a healthy market that will most likely continue its sideways trend. Remember this is an intraday analysis so the sideways trend is predicted for the next 24-48 hours, after which the indicators may tell a completely different story.

Bitcoin Charts By Tradingview

Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.

Mark Arguinbaev

I'm a 29 year old cryptocurrency entrepreneur. I was introduced to Bitcoin in 2013 and have been involved with it ever since. Fun Fact: I mined cryptocurrency using my college dorm room's free electricity.

Published by
Mark Arguinbaev
Tags: bitcoin

Recent Posts

Crypto Veteran Investor Explains Bollinger Bands and How To Spot Gems Like Cardano and Bitcoin Spark

In the world of cryptocurrency investments, having the right tools and strategies at your disposal…

2 hours ago

October Historically Is A Good Month For Cryptocurrency Market, Here’s Why You Should Buy In Now

October has historically been a good month for Bitcoin and the cryptocurrency market. In the…

4 hours ago

Why THORChain, Tradecurve Markets, The Graph Are Leading the Future of DeFi

The BNB Smart Chain recently launched on top of THORChain (RUNE). Moreover, The Graph (GRT)…

6 hours ago

Chainlink (LINK) vs. Solana (SOL): Everlodge (ELDG) Emerges as the Ultimate High-Reward Alternative

Chainlink (LINK) and Solana (SOL) are two of the most popular blockchain projects, but their…

6 hours ago

A Shift in Power? Pomerdoge (POMD), Toncoin (TON), and Maker (MKR) Claim Top Gainer Status

In a surprising shift of power in the cryptocurrency market, Pomerdoge (POMD), Toncoin (TON), and…

6 hours ago

A Look At Current Social Metrics As $PEPE Leads The Way In The Top 10 Trending Searches On LunarCrush

Social media is a powerful tool for investors of all kinds, but it is especially…

21 hours ago