BITCOIN could be reaching the bottom of its bear run as experts speculate the cryptocurrency could fall in the $6,600-$6,000 range over the weekend, it has been reported.
The cryptocurrency hit a 50-day low on March 30, reaching $6,630.
Writing on Coindesk, Bitcoin analyst Omkar Godbole said the digital currency tends to reverse every time the relative strength index drops to or below 30.00.
He also speculated that Bitcoin will fall in the $6,600-$6,000 range over the weekend.
He said: “BTC tends to reverse course every time the relative strength index (RSI) drops to or below 30.00, according to historical data… As of writing, the relative strength index is close to that mark, at 32.00.”
The report follows a recent tweet from Digital Currency Group Founder Barry Silbert where he indicated part of the renewed bear cycle come from a sell-off related tax season.
Analysts fully expect the market to stabilise during the mid-April US tax deadline, as investors scramble to secure cash to pay capital gains tax.
Bitcoin has been known before to bounce back from bearish ends before, and there is no reason to think it won’t do the same again.
The price of Bitcoin at the time of writing is $6,995.87.
Because of the volatile nature of cryptocurrency it is advised that people to not invest in it.
Cryptocurrencies have attracted an enormous amount of media attention over the past 12 months.
It is unsure whether the price boom is just a temporary price spurt or if they will eventually become mainstream.
Following the success of Bitcoin hundreds of new cryptocurrencies have been issued over the past 12 months.
Interest in investing in new un-tested online money forms took a tumble at the start of the year after the original cryptocurrency saw its value plunge.
In December 2017 Bitcoin was worth $19,000 (£13,420).
However, in January its value plummeted to as low as nearly $6,000 (£4,240).
All the major cryptocurrencies have taken a battering this week, declining by nearly $100billion across seven days.
The average price for most major currencies, including Ethereal, Ripple and Bitcoin Cash, fell by more than 13 percent in the last few days of March.
The market lost more than $40 billion across two days.
While many investors are scared this could be the end of bitcoin’s meteoric rise, evidenced in the reduced volumes on Binance, Bitfinex and Bithump, volumes on futures markets are intensifying.
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Author Matt Drake