It looks like bitcoin is beginning to lose some of the momentum it first gathered at the beginning of the month.
Bitcoin Is Traveling South
The world’s number one cryptocurrency by market cap is currently trading for just over $8,300. This marks a nasty fall from yesterday’s high $8,600 range, which it had managed to sustain for several days. To be fair, however, most of the cryptocurrency space is trading at dismal numbers, with entities like Ethereum, Ripple and Litecoin all having fallen by anywhere between three and six percent respectively.
Is it possible that things are moving in reverse? Recently, Live Bitcoin News reported that there was likely to be trouble ahead for BTC. A global indicator was suggesting that if bitcoin did not reach $9,000, it was set to travel backward and erase all its recent gains. While it may still be too early to tell, the currency does appear to be trapped in a bearish signal given that it’s lost more than $300 in a single day.
One source suggests that the infamous “death cross” is once again in bitcoin’s sights, and that the currency stands to lose as much as 83 percent of its gains. While this seems like a pretty hefty number, the currency is already exhibiting signs that things aren’t going as planned. It’s repeating the same technical patterns enthusiasts and traders witnessed in late 2019, when the currency fell from well over $9,000 into the low $7,000 range.
This occurred in late November and December following nearly a month of steady gains and trading.
It is also pointed out that the death cross for BTC was first witnessed in March of 2018. At that time, bitcoin also fell into the $6,000 or $7,000, which wouldn’t have been so bad except this was approximately three months after the cryptocurrency hit a near $20,000 mark, attaining an all-time high value percentage in December of the previous year.
The death cross has been witnessed in several trading spaces such as the S&P 500. It’s been seen several times, but when it strikes bitcoin, the damage appears to last a while. In addition, bitcoin appears to face additional danger in that it’s already prone to volatility – more so than traditional stocks and bonds.
No Crypto Is Doing Well at Press Time
Many additional “forms” of bitcoin – such as bitcoin cash (BCH) and bitcoin SV (BSV) – are also showing signs of depreciation. As forks of the original bitcoin, both BCH and BSV are exhibiting solid drops at the time of writing, with BCH having lost close to seven percent over the past 24 hours.
In addition, BSV – following a near 100 percent surge last week – has fallen off its high horse and has since lost close to 20 percent of its newfound value. It is presently trading in the $290 range.