Breaking news: Bitcoin plunges below $3,800, this declines could test $3,700

As reported earlier today, a venture capitalist said that contrary to the general belief, the crypto market has not yet reached its bottom. Fred Wilson, the co-founder of Union Square Ventures, a New York asset management firm reckons that after the bottoming, which is expected to take place at some point in 2019 will lead to a reversal and we will see a significant bull rally. However, before that, the declines will continue due to the market pressures.

Bitcoin has left its recent slumber mode to fall from trading almost at $3,820 to below $3,800. The asset is currently in the red, although most other assets are in the still in the green. Ethereum is leading the recovery in the market with gains in the excess of 5%. Bitcoin downtrend is likely to test $3,700 in the near-term, but before that the support at $3,760 will try to stop the losses.

Most of the technical indicators have turned bearish at the time of writing. The Relative Strength Index (RSI) has retreated from touching the overbought levels and now stands at 42.50. The RSI is still heading north and is poised to test the levels within the oversold unless a reversal occurs. This shows that the prevailing trend will continue in the coming sessions before the weekend trading starts.

BTC/USD 15’ chart