Bitcoin failed to record any increase over the last five days. A closer look at the charts revealed that although there were several push to the top, all failed to yield results. For example, on Monday, the apex coin hit a high of $25,500 but met a strong barrier.
Due to this, it went on a downtrend and closed losing a few percent. There was no notable price change on Tuesday, but that trading session was represented by a red candle indicating another selloff.
The drop continued over the next two days as we observed more red candles. On average, the top coin lost 1% daily which totals 4%. However, the corrections are biting harder. In an unexpected turn of events, the selloff increased.
Bitcoin Lost the $22k Support
BTC opened the current intraday session at $23,000, bitcoin was met by massive retracement that got intense by the minute. As a result, it dipped below $22k. A few minutes to the time of writing, it recorded a low of $21,404.
Several indicators point to more downtrends ahead. One such is the Moving Average Convergence Divergence. From the chart above, we observed that the 12-day EMA is currently treading below the 26-day EMA.
This means that BTC experienced a bearish divergence. Based on this, we may expect more downtrends in the coming days as such phenomenon is a clear indication. Another metric that traders need to pay attention to is the Relative Strength Index.
As a result of the massive drop, RSI dropped below 40. After the sudden dump, bitcoin needs to rebound as failure to do so will result in more downtrends. Additionally, it also lost its pivot point.
As per the pivot point standard, BTC is a bearish asset. The total amount of REKT funds exceeded $500 million during this drop. Notably, the bulls saw the largest liquidation.
