Bitcoin has witnessed a sharp 12% decline in the past week, underscoring its current bearish sentiment. The daily Relative Strength Index (RSI) for BTC stands at 30.36, indicating an oversold condition.
Since the beginning of July, Bitcoin (BTC), the leading cryptocurrency by market capitalization, has been grappling with a persistent downtrend. This decline saw the global crypto market lose over $100 billion, reverting it to $2.05 trillion.
In the last 24 hours, Bitcoin dropped to a low near $54,260, marking a 3.35% decrease and suggesting a phase of consolidating losses. The downturn and selling pressure intensified following the commencement of Mt. Gox’s repayments.
The Bitcoin market has exhibited mixed signals, with major holders like the German Government selling off, while retail investors show interest in Bitcoin ETFs. Economist Peter Schiff commented on this dynamic on Sunday, noting, “Based on trading patterns and ETF inflows, it appears institutional investors are selling Bitcoin in the spot market while retail investors are buying through ETFs. Congratulations to the Bitcoin whales for orchestrating this strategy, setting up ETF investors to hold the bag.”
As of the latest data, BTC is trading at $55,620 with a market cap of $1 trillion. The daily trading volume has surged by 30.58% to $26 billion, as per CMC data.
Looking ahead, the question remains whether BTC bulls can regain control from the bears. Starting July around $63,000, Bitcoin faced swift bearish pressure, plummeting to $53,000 within three days. This 12% decline over the past week has heightened market anxieties, reflected in BTC’s fear and greed index at 29.80, signaling high fear among investors.
Meanwhile, BTC’s daily RSI at 30.36 indicates it is oversold, with the short-term 9-day moving average below the 21-day moving average, affirming the current bearish trend.
If BTC bulls manage to overpower the bears, key resistance levels await at $55,879 and $56,118. Conversely, sustained bearish momentum could push BTC below $55,000, finding support within the $54,000-$55,200 range.
In other crypto news, a significant transfer of PENDLE worth $3 million has amplified selling pressure, underscoring the dynamic nature of the market.
