At the time of writing, Bitcoin along with alternative coins had faced an almost 20% – 50% sudden drop. Why is that? Let’s break down the facts. According to Coinmarketcap, on 19th May 2021, Bitcoin topped at $40,000 level and suddenly it dropped by $10,000 and is currently hanging around $35,000.
Look at the past Bitcoin price where it hit the $65,000 level. In the daily chart of trading view, as you can see there’s a head and shoulders pattern. According to Technical Analysis, it shows a huge bearish sign for a market. It formed completely and in this recent drop, the price pulled below the neckline, and at the same time, it broke the major support level in were $40,000 zone.
Not only that, but it also tested the previous higher low and pulled back to the current price level of around the $35,000 zone. It tells the strong buying power at the $30,000 zone. As for a hope, Loot at that RSI indicator. Technically, it means when the graph closed above 70, shows selling power and when the graph closed below 30 means strong buying power.
On the daily chart, 30 RSI tested multiple times and now it’s below 30. As long as the RSI indicator worked well in history, there’s still hope for Bitcoin’s price in the next months. Let’s hold on tight and see.
However, most crypto entrepreneurs seem to be spreading positive vibes on Twitter. Changpeng Zhao, the founder of the largest crypto exchange Binance, left “If you panic sell, you won’t be crypto rich”
As well as the S2F model creator, Plan B noted,