Today, as Wall Street wraps up, bitcoin has also experienced a sharp decline, eventually dropping the monetary price of digital currencies to less than $6000. Bitcoin hit a high of $6900 last week.
The bitcoin price of the early hours of today rose from $6670 to $5670, according to the Cointelegraph. The decline has surprised many market investors. At the moment, buyers are offsetting a bitcoin of a downturn, and bitcoin is in the $6100 range.
Compensation for part of the recent downturn began with a jump of $5700, and buyers managed to raise bitcoin prices to $6200. However, the king of digital currencies has fallen sharply in recent weeks to a mere $3775. At current prices, bitcoin has offset its previous fall by 82.4%. According to experts, the decline of bitcoin to support levels at 5900, 5500, and 5380 has been foreseeable and probable, and the threat remains.
Despite falling below $1000 to $5670, the Relative Strength Index (RSI) over the 4-hour interval shows figure 62. In other words, the index is still bullish.
MACD has also formed a downward curve and has entered the saturation range. In the histogram, however, the volume of purchase is equal to the volume of sales created after the price has fallen.
In the coming hours, traders should look at the volume of transactions in smaller intervals and, of course, the relative strength index at the 4-hour timeframe and reach below the trend line.
At the 4-hour time frame, a Dragonfly Doji is also seen, which signifies a massive sell-off by buyers. Due to the situation of Macdow and relative strength indicators as well as an inappropriate volume of purchase, it is possible to change the trend in the short term.
If this is the case, traders should expect a support level of $ 5450. At this support level, many activities will be performed by traders and investors. According to many, after the sharp rise following the recent drop in prices, bitcoin should also touch its lower support, so market buyers are buying heavily.