In the past 14 days, the price of bitcoin has fallen by more than 30% of its value. What’s more, the cryptocurrency fell below $20K – the previous all-time high during the 2017 cycle.
This is the first time in the history of the cryptocurrency that it has reached all-time highs during the last bull cycle. The steep decline, continued selling pressure, and predominantly negative market sentiment has led many to consider that the downside is for BTC.
However, a popular trader pulled out a historical analysis, according to which the worst is not over yet.
Popular Cryptocurrency Traders and Analysts crypto’s il capo Took it to Twitter to compare the current fall and those in 2018.
The $30K support was similar to the $6K support in 2018. Once it broke, the surrender phase started, but if we compare the two, we can clearly see that it is not over yet.
Funding rates also confirm this.
Source: Twitter
The above chart shows a hidden bearish divergence.
This is a popular technical pattern that occurs when price makes a lower high while the oscillator is making a higher high. This usually happens during a downtrend and suggests that prices are about to move lower in continuation of the downtrend.
Meanwhile, the Crypto Fear & Greed Index has risen as much as 11 points over the past few days, with BTC able to reclaim $20K after crashing below it after a minor correction.
However, this is still “highly feared” territory.
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