Bitcoin Close to Sounding Sell Alarm as Recent Rally Cools

As reported on Bloomberg, “As Bitcoin’s recent rally cools, technical signals suggest the biggest cryptocurrency could face further headwinds ahead.

“The trading range between Bitcoin’s 50- and 200-day moving averages has diminished to its narrowest since June, potentially indicating that an inflection point may be on the horizon. Though Bitcoin’s already fallen below its 50-day moving average, a drop below the 200-day could trigger a sell signal.

“’The best way to describe the market is it’s retracing last year’s bear market,’ Mike McGlone, an analyst with Bloomberg Intelligence, said by phone. ‘It’s in no hurry to take out the old highs — there’s a hangover of residual selling from the parabolic rally in 2017. There’s just a lot of people who bought it, got way too overextended, who will be responsive sellers.’”