Bitcoin is once again down to February lows

Yesterday, on April 4, Bitcoin was trading at the previous levels in the $7,370- $6,550 zone. After a massive growth on Monday, when price gained by 7%, the market declined and retreated to the lows around $6,550.

Despite the fact that on large exchanges, such as Bitfinex and Bithumb, large volumes were registered for the longs and the market struggled to maintain the momentum that it created in the last 5 days, digital currency number one failed to rebound from local minimum, the last time that the market traded in February 2018.

The relative strength index (RSI), which measures the rate and change in price movements, indicates that the market was oversold in the last 24 hours, given that RSI is approaching level 34.6. Low RSI and Williams indicator, also shows a strong market oversold at current levels.

Massive sales of Bitcoins by two large hedge funds: Fortress LLC and Mt.Gox trust could be the potential factors that contributed to the Bitcoin’s decline in price in the last four months, from January to April.

According to recent research and recent reports, Fortress sold more than $200 million Bitcoin worth during the first quarter of 2018, and Mt. Gox also dropped into the market 362 million dollars of Bitcoin. Two organizations in a short period of time sold more than half a billion Bitcoins on the main crypto-exchanges.

It is possible that the use of crypto-exchanges with limited liquidity led to a domino effect on all exchanges, explaining the correlated movements in the market.

FortFS