Bitcoin’s bad year may be getting worse.
The world’s biggest cryptocurrency, which nearly reached $20,000 in December, has lost almost two-thirds of its value since then. And according to the Directional Movement Index, Bitcoin is on its strongest negative trend since the sell-off earlier this year. The index’s ADX line is currently at 39.3. Anything above 25 is considered a strong trend.
Meanwhile, the index’s DVAN trend line, a divergence analysis that measures buying or selling pressure, is also giving off ominous signals. Data show that the market in June has been holding onto an overall bearish sentiment, characterized by the red band in the top-most chart above, that started around mid-May.
With no end in sight to the selling trend in Bitcoin, the digital currency could test its 2018 low.