Bitcoin [BTC] is facing selling pressure today on Tuesday as traditional markets suffer the jitters over fears of a “no-deal” Brexit.
The leading cryptocurrency by market price is presently trading at a price near $18,800 USD at the reporting time, representing an over 2% decline on the day, consistent with CoinMarketCap. The decline comes after multiple rejections near $19,400 USD within the past 48 hours.
Bitcoin [BTC, -2.68%]’s rally has lost steam within the past few days, with large sell orders placed around the all-time high of $19,920 USD capping the upside. Consistent with observers, people are looking to sell at the present levels supported by what happened during the 2017 market. Bitcoin peaked at $19,783 USD earlier in December 2017 and fell as low as $6,000 USD by early February.
There is evidence of some investors liquidating their bitcoin holdings. The balance held in so-called accumulation addresses has declined by over 4% to 2,698,719 bitcoin within the past three weeks, consistent with data source Glassnode.
With the repeated rejections near all-time highs, the cryptocurrency is starting to look heavy on technical charts, forcing some traders to reassess their bull-run positioning.
“We are leaning bearish here and starting to unwind some long exposure in bitcoin and DeFi selections,” added Patrick Heusser, a senior cryptocurrency trader at Zurich-based Crypto Broker AG. “The reasoning is on some technicals and the way the commodity exchange is structured with large orders at around the lifetime high.”
Bitcoin’s 14-day relative strength index recently charted a bearish divergence, or lower high, possibly warning of an impending price pullback. The MACD histogram, an indicator employed to gauge trend strength and shifts, is producing deeper bars below the zero line, also indicating a downside move might also be imminent.
A potential sell-off within the stock markets might be a driver for a notable price pullback in bitcoin. The cryptocurrency has rallied to record highs but is yet to decouple from the stock markets. The ascent from $10k to $19,920 USD seen over the past three months happened amid the bullish price action within the equity markets.
At the reporting time, major European stock exchange indices like Germany’s DAX and U.K. FTSE are down a minimum of 0.3%. The futures tied to the S&P 500 are also down nearly 0.3%.