Over the past few weeks, we have consistently reported that Bitcoin was on the rise and it looked as though it was set for record-breaking gains over the next few months. That still very well be the case, but we are now seeing an equally dramatic Bitcoin price drop. Over the weekend, it is highly likely that Bitcoin will start the week with a devaluation of more than 20%. A drop that will prove to be the largest yet, this year. Starting the week at more than $10,000, Bitcoin is now looking at the mid $7000s.
Significant Drop in Price
The price drop not only signifies the largest price drop of the year so far but also points to a recurring event for the cryptocurrency. For weekly losses, Bitcoin has seen significant devaluations in the double digits four times over the past 12 months. However, this will only be the second in the past 6. If past behavior is any indication, once bottomed out, Bitcoin will surge again.
In January Bitcoin suffered a weekly price drop of almost 15% when the price dipped to just above $3,250. Once Bitcoin bottomed out, it maintained for over a month before heading into bull territory once again. Current charts looks to have a lot in common with January’s indicating an end to the bull market. If that is the case, we are looking at confirming a weekly price drop of over 20% for Bitcoin.
Looking at the weekly charts, a combination of narrow prices, low RSI over the past ten weeks, and indicators on the MACD showing sub-zero levels all point to a bearish turnover.
Hourly charts, on the other hand, show things looking a bit brighter for Bitcoin and have pointed to a short-term price hike. That said, it is likely only a hiccup in the otherwise declining trends. The longer-term RSI, for example, is a much stronger indicator that the bears are going to take control.
Daily charts also show bearish turns. Moving averages are declining steadily, as are the previously mentioned sub-zero MACD indicators.
While it does appear that a bear run is imminent, there is still a chance that the slide in price can be stopped. Should prices show a significant enough comeback, it would be enough to send Bitcoin is a positive direction. That said, we do not believe that to be a likely turn of events at the current moment and expect a significant price drop and ensuing bear run starting Monday. Stay tuned for more on Bitcoin’s movements.