Strong Decline In Bitcoin Price Overnight, Right Time To Buy?

• The sentiment of Bitcoin has become bearish as per CoinCodex.
• In less than the last 24 hours, BTC price has declined by more than 15%.

At press time, the Bitcoin price was down by 30% from its all-time high of $73,750, formed five months ago. Additionally, a strong bearish wave was seen in the market which led to huge decline in major cryptocurrencies over the last few days.

Bitcoin is the largest cryptocurrency in the global crypto market whose market cap declined by 16.7% in the last 24 hours. This resulted in a market cap value of $996.911 Billion, resulting in a market cap dominance of 53.39%.

Despite the price decline, a 150% surge in the coin’s traded volume was recorded, resulting in a traded value of $68.486 Billion. Also, the volume/market cap ratio of the coin was 6.12% which represents huge liquidity in the crypto.

At press time, the coin’s circulating supply was 19.735 Million BTC, which was 93.98% of the coin’s total supply. Also, the maximum supply of the coin was 21.0 Million at the time of writing, followed by a fully diluted market cap of $1.088 Trillion.

Derivatives Data Also Showed Bias for the Bears

The futures of Bitcoin witnessed a huge surge in trading activity over the last 24 hours resulting in an advance of 140% in its trading volume. This further resulted in a traded value of $128.78 Billion.

The liquidation chart of the coin showed huge long liquidations over the last few days followed by higher profit booking in the long positions. This represents the dominance of sellers over the price.

Despite the surge in the volume, the open interest for the coin declined by 15% which showed that traders exited their positions from the coin’s derivatives. Also, a decline of 39% in the options volume of the crypto was recorded.

Moreover, the value of the value of the longs liquidated in the last 24 hours from the press time is $232.75 Million. Against this, shorts worth $42.97 Million were liquidated.

A strong decline in the Total Value Locked for the coin was also recorded which resulted in $568.77 Million. Bitcoin also had one of the strongest security scores among the other cryptocurrencies resulting in 96.87 as per Certik Skynet.

BTC Crypto Technical Analysis

BTC price followed a dynamic range which was slightly bent towards the lower direction. The price further continues to trade inside the same range for the last five months from the time of writing.

The following behavior of the price led to the falling wedge pattern on daily chart of crypto. Following the most recent price action, the price broken down below the wedge pattern with strong volume. 

The following behavior of the price showed higher possibility of further decline in token’s price.

Bitcoin Technical Indicator Analysis

Following the prior trend, the EMAs traded in a golden cross on the charts but the price had declined below the 50-day and the 200-day EMAs.

BTC/USD Chart by TradingView

The MACD indicator metrics were also reversing to the negative trajectory as a bearish cross was formed. Also, the MACD line declined to the negative trajectory and bearish histograms were formed on the chart.

The RSI also declined to oversold zone and traded at a level of 25 followed by the decline below 14-day SMA. This exhibited a decline in the bullish momentum in coin’s price.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.