The past week was a rollercoaster for Bitcoin and its price – the leader in cryptocurrencies fell from $10,000+ to $8,000 in just a few hours on Tuesday, 24th September. Since then, the Bitcoin’s price has made a slight recovery, floating at around $8,400 before plunging to $7,898.57 on Monday, 30th September.
The shift from bullish to bearish stance is the primary reason behind Bitcoin’s increased volatility. Before the drop there were strong indications that a bearish cycle is just about to begin between traders. The Moving Average Convergence Divergence, or MACD index, displayed a bearish momentum in August. The last time MACD crossed bearishly was before the bearish market in 2018.
Bollinger bands upper and lower index limits also showed tightening, leading to support and resistance zones at $8,300 and $7,900 respectively. If Bitcoin falls beneath the support zone and closes the week in a bearish trend, the mid-term future of Bitcoin will be in “red”.
If we apply the holy trinity of trading measure indicators – Bollinger Bands, the Moving Average Convergence Divergence, and the Relative Strength Index, Bitcoin’s price sits just on the edge of support. And although Bitcoin is breaking support zones for the past week, traders should be on the lookout, because a move below $7,600 could end up into entering another bearish cycle. The monthly Moving Average support sits at $7,000 – a step below could negatively impact Bitcoin’s price to as low as $2,500.
Despite the bearish trend in the entire crypto sector, the Tether (USDT) is, conversely to all major cryptocurrencies, gaining a momentum. Tether is now accounting for 69% of all BTC trades. Looking at global crypto trading volumes, Tether surpasses Bitcoin, as 34% of all trading belongs to Tether. Bitcoin is responsible for 28% of the trading volumes at the moment of writing.
Over the past week, the global crypto market capitalization shrunk down from $263,2 billion to $215,7 billion as of press time. Trading volumes also see a slight decline, settling at $54 billion as of press time.
Ethereum, on the other hand, is in an upwards motion, trying to mitigate last week’s massive drop from $210 to below $170. As of press time Ethereum trades at $172.52.
Ripple is up with eight percent over the past 24 hours. Ripple’s XRP token managed to return half of the losses from Bitcoin’s plunge, trading at $0.258322.