In the last 14 days, the price of Bitcoin has lost more than 30% of its value. In addition, cryptocurrencies fell below the record high of $ 20,000 reached during the 2017 cycle.
This is the first time in the history of cryptocurrencies that it has fallen below the highest level ever reached during the previous bull cycle. Many thought BTC was bottoming out due to the sharp decline, continued selling pressure, and primarily negative market sentiment.
However, popular traders have drawn historical analysis that the worst may not be over yet.
- Popular crypto traders and analysts il Capo of Crypto On Twitter, we compared the current decline with the 2018 decline.
The $ 30,000 support was very similar to the $ 6,000 support in 2018. When it broke, the surrender phase began, but a comparison of both clearly shows that it is not over yet.
The funding rate also verifies this.
- The chart above shows the hidden bearish divergence.
- This is a popular technical pattern that occurs when the price goes low while the oscillator is high. This usually occurs during the downtrend, suggesting that the price is about to fall as the downtrend continues.
- At the same time, the crypto horror and greed index has increased to 11 points in the last few days after a slight recovery that allowed BTC to regain $ 20,000 after a crash under it.
- But this is still an area of ”extreme fear”.