Bitcoin’s [BTC] bullish rally in April which bumped the king coin’s price by over 110 percent, halted on June 3. A massive pullback was witnessed, dragging the price down by over 6 percent in an hour at its peak. 24 hours post the correction, the price of the largest cryptocurrency in the market fell from $8,800 to $7,700, registering a 12.5 percent decline.

In the middle of this bearish onslaught, a key indicator diverged from common opinion. As reported by Bloomberg, the GTI Vera Convergence-Divergence indicator which looks at trend reversals and market exhaustion in cohort with the Moving Average Convergence Divergence [MACD] indicator, portrayed selling signs for the first time since April.

The report added that this could “be a further downside as Bitcoin halts its recent monstrous rally.”

Source: Bloomberg

In addition to the GTI VCD indicators showing selling signs, the daily Relative Strength Index which indicates investor interest, was slumping at 47.57, at press time, having dipped below 70 on 30th May. This is the lowest the RSI has been since 26 March, a week before the April price rally reared its head.

With no clear-cut reason for the recent market meltdown, the bearish decline of the cryptocurrency market is worrying. During this past bullish rally, several pullbacks were witnessed. However, the severity and longevity of the same was less pronounced than the present one.

One key feature of this drop was that trading volume across the 10 exchanges deemed to be “real,” rose during the price slump. However, real-world use of the cryptocurrency in terms of number of transactions, dropped under 300k when the prices took a tumble, showing divergent movement across key indicators.

The US Securities and Exchange Commission who currently have two Bitcoin ETF applications at their disposal took a jab at the cryptocurrency industry as well. As the price continued to slump, the top regulatory body sued Kik Interactive, the parent company of the Kin token for raising $100 million through a 2017 token sale “illegally.” The SEC’s prolonged negative stance towards the decentralized currency space is speculated to have sustained this bearish decline.

Altcoins, so long the beneficiaries of BTC’s price pump, were also plummeting as the collective market shaved over $30 billion in less than 48 hours. EOS [EOS], Litecoin [LTC], and XRP recorded the highest losses over 24 hours, as the market was marred in a sea of red.

The post Bitcoin’s [BTC] price rally seems to be stopping dead in its tracks; what goes up, must come down? appeared first on AMBCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

185 +