The leading cryptocurrency Bitcoin has been in a downtrend since hitting an all-time high of $69,000 in November last year. Bitcoin price declined sharply from $ 43,200 during the day to the $ 38,000 band.

RSI Enters "Magical" Zone

After the warnings from the FED and the Russian Central Bank, Bitcoin fell to around $ 38,000. According to the analysis shared by Bloomberg Business experts, Bitcoin's relative strength index (RSI) has entered the 30-40 region. The RSI region is described as "Magical".

Historically, Bitcoin (BTC) is oversold when the RSI is below 40. The bears don't have any more energy to suppress the price. The RSI was developed by stock and commodity analyst J. Welles Wilder in 1978.

On January 7, 2022, it hit a two-year low for Ethereum (ETH), a second cryptocurrency. As such, some analysts are confident that Bitcoin and major altcoins are approaching the bottom of the ongoing mini bear market.

Bitcoin (BTC) price has dropped by 9% in the last 24 hours. As he reported earlier today, market panic is mostly associated with news from the US Federal Reserve. According to Coinglass, more than $726 million in crypto positions have been liquidated in the past 24 hours; bulls are responsible for more than 81% of this huge volume.

Peter Schiff: "Bitcoin Price Could Drop To $10,000"

The founder of SchiffGold and CEO of Euro Pacific Capital used Twitter to gain a premium from the sudden Bitcoin price drop. Peter Schiff believes that with a double top pattern below $30,000, Bitcoin price will drop below $10,000. The veteran believes that gold has proven itself to be a reliable faucet of value, unlike Bitcoin, which has dropped 18% to date compared to the massive drop in stocks.

Bitcoin, which reached record levels in 2021, experienced a decline with Tesla's suspension of sales with BTC and crypto currency bans from China. Affected by the negative news, BTC fell as low as $29,000 in the summer.