BTCUSD reality check: Bitcoin might lose the crypto king title

Weak technicals and sudden crashes lately characterize BTCUSD. It could soon cause distrust among the investors when it comes to Bitcoin.

The Wall Street crash on Thursday caused havoc among the BTCUSD investors as well. Before the crash, several analysts claimed that Bitcoin was on the path to $14,000 soon.

These same analysts are now claiming further decline for BTCUSD. People who rushed towards investing in Bitcoin as soon as it pushed towards $10,000 are dismal now.

Weak technicals and sudden crashes haunt BTCUSD investors

BTCUSD halvening occurred on May 11. The fanfare regarding the occasion was crazy. People were claiming that BTCUSD would soon make an enormous move up post the halving. And those who invested in Bitcoin at that time, looking to get quick profit, are yet to breakeven.

BTCUSD is the most popular cryptocurrency. However, the abrupt crashes and the weak technicals that keep on looking over Bitcoin has swayed several investors away from it. People are turning towards Altcoins such as Ethereum [ETHUSD] or dollar-pegged coins such as Tether or [USDTUSD].

 

BTCUSD technical snapshot

BTCUSD 4 Hour Chart
BTCUSD 4 Hour Chart

The four-hour timeframe shows that the RSI is dipping downwards again. It initially rose after the sell-off ended. However, a dipping downward RSI is a Bearish sign.

The MACD indicator is still pretty Bearish. The downward crossover is expanding, which suggests that the Bearish momentum is increasing. 

The 20-period Exponential Moving Average is acting as a dynamic resistance level. The Bollinger Bands are expanding, which points to increased volatility. That would be a good sign in case the technical indicators were Bullish.

However, technical indicators are strongly Bearish now. Therefore, an expanding Bollinger Band could signal a deeper fall for BTCUSD.

The recovery in Wall Street could bring about a much-needed comeback for Bitcoin as well. Several investors who were looking forward to buying the dip have the opportunity. An influx of buyers would pull BTCUSD up!

Check BTCUSD Chart on tradingview.

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