Bitcoin (BTC) registers marginal buying near the $16000 level!

Bitcoin and other cryptocurrencies have witnessed a drastic action in this second week of November. The stiff sell-off didn’t provide any hope or opportunity to take counter-action against the movement. The resulting action was a decline of $5000 in value, and close to 30% of its market value plummeted, causing havoc amongst the crypto investors.

Bitcoin has been considered a parent indication of cryptocurrencies, and wider sentiment in this asset class played a crucial role in the loss-cutting trend taken by retail investors. This move must also have taken source from the mass lay-off of major tech firms, which might share a correlation with the sell-off witnessed in the entire crypto industry.

The market capitalization of BTC lost more than $100 billion by November 9, 2022. The current price action of BTC has been failing to continue moving in the positive direction, and the negative selling pressure would dissuade new investors from the crypto space.

Bitcoin has made a regressive trend against the positive sentiment that has been brewing for a long time. The failure to propagate the uptrend into a breakout foreshadows a decline in BTC valuations. Combining this price action with the latest development in the crypto industry created the ambient scenario for a selling trend.

Bitcoin’s clear price trend has been negative, while the respect seen towards the support level of $18,370 level was a welcoming sign, but it failed to change the intentions of sellers. As a result, the prices continued to move in a downtrend collapsing from the support level to the $15,800 level within a day.

RSI has declined from the peak of 65 to oversold zones, with MACD widening the gap between the two curves. BTC lost double-digit market share in the last two days and continued to move towards new lows in the wee hours of November 10.

However, buyers found the value under $16000 as a good vantage point leading to a marginal gain in its price action. Despite the minor gain, BTC has formed a wick at the top and also at the bottom. Hence the movement analysis fails to confirm a retracement or downtrend possibility with affirmation.