Bitcoin has been trying hard to break the psychological $4,000 mark over recent months, repeatedly moving above the line only to fall back.
The bitcoin price, down some 80% from its all-time high set almost a year and a half ago, has been stuck in a long-running bear market despite a raft of positive news and data that suggests bitcoin, along with the wider cryptocurrency market, could be about to make a major move.
Now it appears the brief rally that saw bitcoin climb from around $3,100 in mid-December to almost $4,000 could be over.
The bitcoin bulls have been out in force over the last few weeks, making bold predictions about how high the bitcoin price could eventually go and jumping on news that the bitter crypto winter could be coming to an end.
The bitcoin price, which began February at a little over $3,400 per bitcoin, added some 11% over the month, breaking its six-month losing streak.
But the latest technical data now shows the long-term buying demand for bitcoin has deteriorated, which could mean selling pressure could increase—bitcoin’s Moving Average Convergence Divergence indicator has been steadily falling since mid-February, Bloomberg first reported.
“The entire industry is ripe to resume a path to lower prices,” Bloomberg Intelligence analyst Mike McGlone wrote in a recent report. “Conditions are akin to November, just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.”
The last bitcoin bull run, which saw the bitcoin price explode from under $1,000 per bitcoin at the beginning of the year to almost $20,000 by December 2017, resulted in a hangover that’s seen bitcoin lost some 80% of its value.
Some $400 billion in value has been wiped from the cryptocurrency market over the past 12 months as adoption stalls and banks put closely-watched plans to wade into bitcoin and cryptocurrencies on hold.
“The question of mass adoption of cryptocurrencies is one that has been pondered by many industry advocates and certainly is not without its hurdles,” said Mati Greenspan, senior market analyst at brokerage eToro in a note to clints.
“Starbucks is planning to accept bitcoin through Bakkt by the end of the year. Birks Group in Canada has already started accepting bitcoin for Jewelry in some stores. Rakuten in Japan is also reportedly setting up an option for crypto payments that could go online soon.”