Throughout the last 30 days, Bitcoin price, has managed to gain around $300 or roughly around 8 percent of its value. Toward the end of February, the cryptocurrency even peaked to around $4,200, only to dip to $3,800 on the same day.
According to Bloomberg, however, the recent rally might be losing its momentum. A report published on March 12th suggests that technical indicators show that long-term buying demand for Bitcoin is winding down. This, in turn, could be indicative of intensifying selling pressure.
Bitcoin Price Rally in Jeopardy
Following the log of its very first positive returns in the past seven months and rising above its 52-week lows, Bitcoin’s Moving Average Convergence Divergence indicator has since been declining steadily, the report outlines.
Moreover, the size of Bitcoin’s average daily gain has also declined since February, which, according to Bloomberg, might be signaling that the rally is headed to its end. Bitcoin’s hitting a massive resistance level at $4,000 and before that resistance is breached with volumes, its price may remain under pressure.
“Industry Ripe to Resume a Path to Lower Prices”
The above falls in line with Mike McGlone, Intelligence Analyst at Bloomberg. Speaking on the matter, he said:
The entire industry is ripe to resume a path to lower prices. Conditions are akin to November, just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.
Mati Greenspan, Senior Market Analyst at eToro, on the other hand, outlines that investors are eyeing larger potential in some of the altcoins, proclaiming the current alt season.
As we approach the culmination of the crypto winter, we’re actually seeing some of the altcoins delivering spectacular gains in the last few weeks. We are now in what industry insiders like to call alt-season.