Bitcoin price analysis: BTC/USD breaks key demand zone – declines remain unstoppable

Bitcoin declines are unstoppable on Monday. The asset has traded highs of $3,804.72 and touched lows of $3,672.33. As per the cryptocurrency live rates on FXStreet, BTC/USD is trending 2.54% lower on the day while it is currently valued at $3,691.

The entire market is bleeding at press time with EOS being the worst hit at a 9.52% loss. Bitcoin Cash comes in second trending lower 5.56% followed closely with Ethereum Classic at $5.05%. The rest if the top twenty cryptocurrencies are showing declines between 2% and 5%. The total market capitalization has thinned significantly from $129 billion to the current $125 billion.

As discussed last week, Bitcoin needed to resume the trend above $4,000 last week to avoid the current declines. Just like I predicted the investors got exhausted and were prompted to sell. This created more supply and less demand warranting the current drop. Bitcoin is likely to find support at $3,650 after breaking below the key demand zone at $3,700.

Meanwhile, for a reversal to occur, the bulls have to push Bitcoin above $3,700 and focus on reclaiming the support at $3,800. According to the technical indicator signals, the path to recovery will be an uphill task. The Relative Strength Index (RSI) at 18.91 is still heading south while the Moving Average Convergence Divergence (MACD) is at -30.73 to show that the bears are in charge.

BTC/USD 4-hour chart