Bitcoin price is plunging! Cryptospace is experiencing acute bearish pressure! What caused the downfall?
The BTC price flashed the possibility of a bearish reversal as it maintained a consolidated trend for over a week. The volatility had dropped to ground level, marking a 7-month low, indicating the markets could remain confined within a narrow range. Beyond this, many speculated that this would be the final nail in the coffin, beyond which a massive price rise could follow. However, the recent price crash has delayed the possibility of a bullish reversal, and the reason now is again Mr Elon Musk.
Ever since Musk showed his leniency toward Dogecoin, the entire crypto space has been impacted to a large extent. As per some reports, Tesla and SpaceX, owned by Elon Musk, have liquidated Bitcoins they held for over a couple of years. Tesla was one of the institutions holding a huge amount of Bitcoin worth over 30,000, which has reportedly been sold.
So what’s next for the Bitcoin price?
The bitcoin price marked lows around $25,100 before the previous day’s close, indicating the bears held acute strength. After accumulating enough strength, the bears may continue to maintain a huge dominance over the rally, keeping the price restricted below the interim resistance. Moreover, the price has reversed the bullish pattern, which may keep the rally consolidated for a while.
As mentioned above, the BTC price broke down from a bullish falling wedge and almost reached the lower support, which appears to be crucial at the moment. Although the price rebounded from these lows, close to $25,000, the bearish momentum continues to prevail. Moreover, the price began the present-day trade on a bearish note while the RSI hovered within oversold levels, which could fuel the descending trend.
Collectively, Bitcoin doesn’t appear to be in a good state, as it has kept market participants bewildered about the next price action. Until the traders do not see the current crash as a great buying opportunity, fewer possibilities of a trend reversal could be expected. Now that the resistance levels have lowered from $31,500 to $30,000 and $29,500, the resurgence of a fresh bearish wave may be expected.
