The price of bitcoin has dropped dramatically to begin this week’s trading session. The price is currently consolidating in an insecure area. The sharp drop has shattered all short-term bullish ideas, and traders will be hesitant to buy too fast. The bears have successfully pushed the price towards levels unseen since 2020. If this is Bitcoin’s ultimate low, smart money will undoubtedly set up a zone to gather massive orders of the peer-to-peer digital currency.
The price of bitcoin is at $23,700. On the 8-hour chart, the bears have established two strong engulfing candles, followed by a massive infusion of volume. In the area of the present price movement, the Relative Strength Index displays a notable low dating back to 2019. If market conditions continue to push the BTC price in such a free-falling way, Bitcoin’s reaction to this important RSI level might be an early market bottom indicator.
In the fast-moving market, it’s been a season of sell-offs. The combined market capitalization of all cryptocurrencies has plummeted below a trillion dollars, according to CoinMarketCap, signaling that the market is firmly entrenched in “crypto winter.”
At press time, Bitcoin was trading about $23,200, down 16% on the day. The native cryptocurrency of the Ethereum network, Ether (ETH), has dropped 18% to $1,222.
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