On Sunday, the prices of the Bitcoin plummeted further. The crypto-currency now appears to be heading toward the most disastrous weekly loss that it has experienced in the past 5 years.
On Bitstamp at the press time, Bitcoin which is the leading crypto-currency in terms of market capitalization is now trading at $3520.
That represents about 36 percent decrease from $5553 which was the opening price on Monday.
This marks the biggest drop in terms of weekly trading, since the April of 2013. During then the prices fell to $91 from $165, thereby decreasing by 44.8 percent.
Until the bulls recover in the trading, this is going to be the biggest drop since the April of 2013.
If the BTC closes today below $3887 then the weekly loss will be confirmed. It will also mark the second biggest weekly loss of 2018.
The first one was when there was a 30 percent decrease in the month of January in 2018.
The drop of 33 percent is looking overdone according to the Relative Strength Index for the 14 days.
However the market is paying no heed to the reports of overselling conditions which are being reported by the technical indicator.
Despite the low readings on the Relative Strength Index (RSI) there are evidences that the BTC has found sellers during all those 11 days.
The inability of the BTC to produce a strong corrective bounce even after the conditions of over selling is indicative of the fact that “buy the dip” mentality is absent.
The BTC is currently trading below $3760 which is connecting the lows of August 2015 and August 2016.
If the BTC closes below that level it would be bolstering the already technical setup which is already bearish.
Further more, if the market closes below that level it would be in support of the 200 weekly Simple Moving Average (SMA)
Source: CoinDesk, Investing