The Bitcoin and cryptocurrency markets are constantly fluctuating with changes in token prices. Back and forth movement in prices continues to be a prominent factor contributing to the speculative nature of an asset.
In some cases, it can be a favorable move for investors, especially when bulls are in the field. However, most tables are overturned by losses of funds and money when bearish.
The first half of 2022 has brought an extreme winter to the cryptocurrency market. The collapse of the algorithmic stablecoin Terra and its native token LUNA made the situation even more intense.
Billions of dollars have been lost for almost every digital asset. Bitcoin and other crypto tokens don’t seem to track their movements as they travel the southern route.
However, as we enter the second half of this year, a new phase has been created for major cryptocurrencies. BTC price he started to rise in July and started to rise in early August. However, the recent rally is short-lived as the bears have once again taken over the cryptocurrency market.
Last week, the cryptocurrency market saw a further decline in the price of most coins. The downtrend is quite dramatic as the pattern continues to deepen as the day goes on.
This has resulted in a significant reduction in the cumulative market capitalization, reducing its value to around $1 trillion. The surprising price move saw his market cap drop by as much as $50 billion in a single day.
Bitcoin MVR Triple Ribbon Indicator
For Bitcoin, the story is even more devastating as the indicator predicts the likelihood of further price declines in the future. MVR Triple Ribbon. These are 10, 15 and 20 day moving averages. It is used to measure the average BTC price over several different time periods.
A CryptoQuant analyst provided insight into the indicator and potential consequences for the BTC price. According to analysts, the indicator provides a signal for Bitcoin to drop. Analysts said there were five serious signals of BTC weakness and its sell-off this year. This year saw an average BTC selloff of around 30%.
Over the past 8 days, the price of Bitcoin has fallen significantly. BTC dropped almost 14% over the period. Bitcoin price is hovering around $21,000 in the market.
Recall that BTC hit a two-month high of $25,200. However, the token suddenly plummeted to $24,000. However, the downtrend appears to have continued as the token continued to fall from last week and throughout this week.
The indicator is about to do a full crossover on press. Such previous moves resulted in a 30% reduction. Therefore, repeating this process could push the price of Bitcoin below the $20,000 level.
Featured image from Pixabay, Charts from TradingView.com
This indicator predicts a potential drop in Bitcoin price
Source link This indicator predicts a potential drop in Bitcoin price