Bitcoin prices have dipped significantly into the red over the past 24 hours sending alarm bells ringing for many short term holder, While long term holders have experienced dramatic losses such as prices shedding $3k USD within 24 hours last December, the current price drop of 7% has many worried for the future.
At the time of writing, Bitcoin prices are stable at the $5572 price point. A loss of 4.76% in the last 2 hours, trading volumes have almost doubled from 4 to $8 billion USD.
Furthermore the RSI has also hit a low not seen for 4 years. Also known as the relative strength index, the indicator in simple terms is a valuable in representing the overall conditions shown in markets. Currently the figures are extremely low reflecting the bearish period is likely to come to an end. Comparing the closing prices on a daily basis, the RSI also reflects the direction of future price movements and the current momentum of movements. This indicator while useful for short term traders cant be compared with the buy and hold strategy which has still been considered the gold standard for those looking for stable gains.
Current market conditions may look alarming, but considering the RSI and other moving averages, the current drop in prices is likely to be met with resistance as support levels at $5000 are huge. Despite the confidence many had at $6000, current drops suggest that a retest of the $5000 is on the cards even though unlikely. Within the next 7 days, price movements are set to allow recover to $6000 so Bitcoin has been given a buy signal currently. You can purchase Bitcoin at Nigeria’s premier exchange NairaEx and have your purchase delivered within a matter of hours !
Disclaimer : Any opinions contained within this article are of the author and not representative of btc.ng in any form. Please trade crypto currencies at your own risk,. The author or BTC.ng can not be held responsible for any losses incurred. Remember losses can exceed deposits so please trade responsibly. The author does hold cryptocurrencies at the time of writing. The article is not meant to serve as trading advice, please carry out independent research before you trade cryptocurrencies.