The last 48 hours have seen Bitcoin hit a new year low. In the early hours of Monday, Bitcoin dropped from a little over $3,600 to hit a new year low of under $3,400. Altcoins dropped in tandem seeing the total market lose more than $6 billion. Although Bitcoin did not hit the 2018 year low of a little over $3,100, it continues to trade within that range, evidence that the crypto winter isn’t close to ending.
Now, as the bulls consolidate and prepare to pull Bitcoin out of the red zone, a key indicator has shown that there might be a little more pain before gains.
Bitcoin Enters Into A Sell-Off Phase, Again
According to a report by Bloomberg, based on the GTI VERA Convergence Divergence Technical Indicator, Bitcoin has just entered into a sell-off phase. This is a dangerous phase that could see prices dramatically drop. The signal will not be welcomed by the bulls as the last time it emerged, bitcoin dropped by half, coming from over $6,200 to under $3,200.
If the crypto leader is to follow the same trend, Bitcoin could easily fall under $2,000, a position many experts have called to be the bottom of the coin. The drop is expected to see altcoin also drag down and possibly hit new lows. While Bitcoin was dropping by around 5% in the early hours of Monday, most altcoins were recording drops of between 5% to 15%. So far, it has been noted that over $400 billion has been lost in the last 12 months and unfortunately, the end is not in sight.
At the time of press, Bitcoin is still in the red zone but has fortunately slowed down. Bitcoin is trading for $3,424, recording a 1.45% drop in the last 24 hours. The crypto leader’s next key position in the upwards will be $3,500, a position the coin will continue to work hard to stay above. On the downside, the $3,300 position is key and is a position that poses a threat for a panic sell-off.
Given the lack of a catalyst that could trigger a decisive price movement, it is likely that Bitcoin will be stuck between the $3,400 and $3,500 price range for the next couple of days.