The trading price of Bitcoin has dropped by USD 5,000 in the last seven days. This weekly fall confirms the “death cross”, that is, the cryptocurrency would be in a bearish market.
The price of Bitcoin (BTC) recently dropped again, consolidating a weekly fall of more than 13%. The pioneering cryptocurrency reached USD 33,300, but it is currently trading above USD 35,700.
At the beginning of last week, the price of the cryptocurrency was just above USD 39,000. For that reason, the drop has led it to lose around USD 5,000 of its trading price in the last week, according to data from TradingView.
There had been no red weekly candlestick after the market collapsed in May when Bitcoin lost 50% of its price in two weeks. However, in previous weeks, the cryptocurrency has failed to regain the USD 40,000 mark.
This week, Bitcoin made a strong start, exceeding USD 40,000 for the first time in a month. It also reached above USD 41,000 briefly, but it has been dropping a little every day.
Some consider that Bitcoin’s decline is due to recent drops in hash rate, resulting from China’s constant attacks on mining activity. The forced closure of around 26 farms in the region of Sichuan is the most recent example of this situation.
Many people are also talking about a crisis of trust that remains after Elon Musk triggered it. The billionaire entrepreneur made comments on the alleged negative impact of Bitcoin on the environment.
Some others point to the upcoming release of nearly 10,000 BTC from the Grayscale investment fund. In mid-July, that fund will release another 16,000 BTC, according to data from ByBt.com. Analysts believe that this could generate great sales and a new opportunity to buy the main cryptocurrency on the market.
Is the Death Cross Pattern or the Stock-to-Flow Model in Force?
The drop in Bitcoin’s price in the last week confirmed one of the patterns that many had been fearing: the “death cross”. This is a cross in which the 50-day moving average falls below the 200-day moving average.
Analysts consider that this pattern confirms that the cryptocurrency would be in a bearish market. However, in the history of Bitcoin, there has been a history of significant rises after the confirmation of a death cross.
The analyst and creator of the stock-to-flow model, PlanB, has predicted that the estimates of his model will persist. Besides, Bitcoin could reach USD 288,000 by the end of this year, as part of the current bullish cycle of the market.
On his Twitter account, PlanB’s analysis even exposed “the worst scenario for 2021”, which is still bullish. The pioneering cryptocurrency would remain somewhat weak for the remainder of June and even the month of July. Then it would begin a new bullish movement.
According to that “worst scenario”, the price of Bitcoin would reach above USD 135,000 by December this year. The ability of the first cryptocurrency to recover from its worst all-time lows leads to predicting new all-time highs for this year.
By Alexander Salazar
