Bitcoin is down by a big margin as we observed one of the longest candles on the charts. As at the time of writing, the apex coin is recovering from a low of $17,114. It is suffering from a decline in positive sentiment as massive negative fundamentals rolled out.
One of the biggest headlines over the last 24 hours is the Binance selloff of its FTT bag. The announcement no doubt had a rippling effect on the entire market, hence the massive downtrend on BTC.
The question on every trader’s mind at this time is if this is the lowest for this bearish period. Only will tell. Nonetheless, derivatives come alive with massive REKT positions. The bulls were at the receiving end as long positions worth more than $120 million were liquidated.
This made up more than 70% of the entire REKT capital. We also noticed an increase in one interest as more traders anticipate further downtrends. There are other indications of further downtrends.
Bitcoin Fast Approaching RSI Danger Zone
Although the apex coin is on a downtrend with little chance of recovering, selling pressures are mounting. It is almost important to take into consideration the effect the most recent state has on indicators.
For example, the Relative Strength Index is on a downtrend. As a result, it is fast approaching 30. It is currently below 40. If there are no improvements in the market, bitcoin may become oversold.
The Moving Average Convergence Divergence is another cause for worry. Since a bearish divergence on Monday, the metric is still negative. Both the 12-day EMA and the 26-day EMA are dipping and may drop below 0.
BTC also lost the 50-day Moving Average. Following the slight improvement in price, the apex may end the current intraday session with losses of more than 9%.
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