{"id":14310,"date":"2022-10-01T05:52:51","date_gmt":"2022-10-01T05:52:51","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/so-what-if-bitcoin-price-keeps-falling-here-is-why-its-time-to-start-paying-attention\/"},"modified":"2022-10-01T05:52:53","modified_gmt":"2022-10-01T05:52:53","slug":"so-what-if-bitcoin-price-keeps-falling-here-is-why-its-time-to-start-paying-attention","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/so-what-if-bitcoin-price-keeps-falling-here-is-why-its-time-to-start-paying-attention\/","title":{"rendered":"So what if Bitcoin price keeps falling! Here is why it\u2019s time to start paying attention"},"content":{"rendered":"
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For bulls, Bitcoin\u2019s (BTC) daily price action leaves a lot to be desired, and at the moment, there are few signs of an imminent turnaround.\u00a0<\/p>\n
Following the trend of the past six or more months, the current factors continue to place pressure on BTC price: <\/p>\n
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Persistent concerns of potential stringent crypto regulation. <\/li>\n
United States Federal Reserve policy, interest rate hikes and quantitative tightening.<\/li>\n
Geopolitical concerns related to Russia, Ukraine and the weaponization of high-demand natural resources imported by the European Union. <\/li>\n
Strong risk-off sentiment due to the possibility of a U.S. and global recession.<\/li>\n<\/ul>\n
When combined, these challenges have made high volatility assets less than interesting to institutional investors, and the euphoria seen during the 2021 bull market has largely dissipated. <\/p>\n
So, day-to-day price action is not encouraging, but looking at longer duration metrics that gauge Bitcoin\u2019s price, investor sentiment and perceptions of valuation do present some interesting data points. <\/p>\n
The market still flirts with oversold conditions<\/h2>\n
On the daily and weekly timeframe, BTC\u2019s price is pressing against a long-term descending trendline. At the same time, the Bollinger Bands, a simple momentum indicator that reflects two standard deviations above and below a simple moving average, are beginning to constrict. <\/p>\n
Tightening in the bands usually occurs before a directional move, and price trading at long-term resistance is also typically indicative of a strong directional move. <\/p>\n
Bitcoin\u2019s sell-off from March 28 to June 13 sent its relative strength index (RSI) to a multi-year record low, and a quick glance at the indicator compared against BTC\u2019s longer-term price action shows that buying when the RSI is deeply oversold is a profitable strategy. <\/p>\n