Bitcoin is consistently dropping after it broke the support zone we mentioned in our last technical analysis and that pretty much answers why the Bitcoin price is plunging. However, an additional pattern played its role to turn the market red.
The Bitcoin price today is $39,928.58 with a 24-hour trading volume of $33,247,660,506. Bitcoin is down 7.49% in the last 24 hours. The current CoinMarketCap ranking is #1, with a market cap of $759,003,767,572.
As shown in the chart above, there was an obvious bearish flag forming on the hourly chart. There was an important support level at $42200 and to avoid the bearish flag pattern, it was necessary to keep the price above this level. After the breakout from this level, the price plunged to the $39,000 level.
RSI indicator shows that Bitcoin has already entered an oversold situation and we might get new buyers from here. Otherwise, there are chances that Bitcoin will enter the range zone below between $39,000 and $37,000.