The past couple of months have been filled with negative Bitcoin news week by week. They were broken up by a massive surge near the end of October driven by China-pump that saw Bitcoin test the lower levels of the $10K support. That has evaporated quickly, however, with the leading cryptocurrency in the world in a free slide.
Bitcoin has fallen below the $9K mark and technical indicators last week indicated another price drop. This time, Bitcoin is just short of falling below $8,000, holding its ground at $8,093 as we speak. It’s an unusually bearish market with the supposed halving taking place in May, with many being rightfully concerned over Bitcoin’s future.
Lack of Positive Development in the Crypto Market Fuels the Price Drops
Lack of any positive development in the crypto and blockchain community has put Bitcoin in a long-lasting price decline whirlwind with no end in sight. Apart from the occasional bullish rally, everything else has been bearish in design. On Monday, the price went down by 4% as buyers were not interested in engaging the market.
This has most likely been sparked by Chinese President Xi Jinping’s recent comments in which he reiterated China’s anti-crypto attitude. All of this is having a significant negative impact on Bitcoin, leaving everyone to wonder which lows will it hit next. Even worse, the 100 and 200-day moving averages have crossed over just a few days ago indicating a long-term bears shift.
The last time that happened was in early 2018 and it spelled the beginning of a massive 60% price drop. Bitcoin recuperated in the middle of 2019 only to fall back behind significantly. Although some experts still expect the leading cryptocurrency to go supernova soon, the crypto market is generally disappointed with the latest developments and believes it’s the beginning of the end of Bitcoin.
Deflating Under Seller and Public Pressure
It’s fair to say that the price decline is a direct result of seller pressure, but also due to public pressure. It’s not a good time for Bitcoin right now – governments are not open to the idea, banks hate it, and with the price dropping further, Bitcoin farmers will surely rethink their investment.
All technical indicators spell a further price drop and Google’s announced foray into banking should make further waves in the industry. The halving that should take place in May is the last straw for the leading cryptocurrency if you ask some experts.
In order for the market to stabilize, bulls need to come back to the tray as soon as possible. A firm close over the $9K mark is required to stop the current trend. However, this will be a bit tough to materialize since Bitcoin currently floats around $8,100.
Trading is a no-go currently unless something happens soon. We’d just wait and see what next week or month brings. Many experts still support the idea of a Bitcoin Big-Bang, although facts say otherwise.