The Bitcoin price has been in the red for the past few days amid the overall crypto sell-off. The BTC coin has declined more than 5% in the last seven days. On Monday, the crypto market leader fell almost 9%. It has a total market capitalization of $806 million and remains the largest digital asset in the world.
BTC Is Declining?
Bitcoin has declined more than 14% since the start of September. The coin’s decline has dampened the overall cryptocurrency sentiment. The cryptocurrency market has been in the red for the past few days. According to data by CoinMarketCap, the global crypto market capitalization currently stands at $1.90 trillion, a 6% decline in the last 24 hours. This is notable since it is below the $2 trillion level.
Bitcoin’s total volume traded in the last 24 hours has jumped 54% to $45.9 billion. Investors believe that the Bitcoin price is up for a choppy week as the price could pull back to $41,000. Other coins such as Ethereum, Tezos, Elrond, Cardano, XRP, and Solana have been among the worst performers in the crypto market for the past seven days.
Analysts have linked the bearish outlook of the crypto market to the Federal Reserve’s interest rate decision on Wednesday. The Federal Open Market Committee (FOMC) is set to release its interest rate decision. While a sooner than expected tapering of the interest rate decision is a good thing for digital assets, we cannot rule out the same for stocks.
Bitcoin Price Technical Analysis
The daily chart shows that the Bitcoin price has been on several twists and turns for the past two weeks. At the time of writing, it was trading lower at $42,696. It is moving below the 50-day and 200-day exponential moving average, which is a bearish indicator. Its Relative Strength Index (RSI) has been declining and currently stands at 38 which is closer to the oversold region.
Therefore, the Bitcoin price is likely to continue with its bearish outlook as the bears target the next support at $40,000. However, a move past the 50 DMA will invalidate this view.
