An analysis of the market shows that Bitcoin’s rally may have lost its steam which could intensify the pressure to sell. In March, its daily average gain has also been on the decline despite the fact that the most popular cryptocurrency has grown by 20 percent since the year began, according to a recent report by Bloomberg.
Bitcoin Trades Around $3,800 Price Level, Declines by 0.07%
As at press time, Bitcoin is trading at $3,881 and it has devalued by 0.17 percent from hours ago. While noone can rightly predict Bitcoin’s price, the behaviour of the market when the price hits a certain range can be used to forecast and make informed decisions. Bloomberg’s analysis of the virtual currency shows that it may be set to decline even further.
One of the metrics used to arrive at the conclusion, is the Bitcoin’s Moving Average Convergence Divergence (MACD), an indicator which has been on the decline since mid February. Trading view’s platform as at press time also shows a MACD value of 40.5 signifying a sell.
Bitcoin Experiences a Drop in Average Daily Gains
Another factor that has been put into consideration, is the drop in the daily average gain of the virtual asset. In February, the average daily gain was around 0.57 percent, but in March, it is around 0.22 percent. Thus, this decline may signify that it’s a rally to attain a better price level may be put on hold for a while.
In the same manner, Bitcoin has hit a resistance level of $4,000 occasionally and that was witnessed in all three months of the year. To resist the pressure, the asset will need to break the $4,000 barrier and maybe rally to a resistance higher than $4,200 which it experienced this February.
Mike McGlone, Bloomberg’s Intelligence analyst also feels that lower prices is what we may get when he said:
The entire industry is ripe to resume a path to lower prices, Conditions are akin to November, just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.
Crypto Investors Seek For Greener Pastures With Altcoins
While Bitcoin’s volatility is being taken advantage of by some investors to cash in on the small profit margin, others have sought for greener pastures. Here, some altcoins whose price are remarkable despite the crypto winter, have received a lot for a while.
Nonetheless, there are others who are just saving up Bitcoin from the falling market prices and are expecting something better in the long run. For instance, Josh Rager, a cryptocurrency trader and analyst recently publicized to his Twitter followers that this may be people’s last chance of being able to afford one Bitcoin.