Cryptocurrency
Trading Bitcoin: 4 Warning Signs Bitcoin’s Going Lower
4 Warning Signs Bitcoin’s Going Lower 4 warning signs: After falling from a recent high of $8.8k, Bitcoin is currently trading at $7.7k. In this article, we will highlight four warning signs which may lead Bitcoin to lower levels. First, the chart above displays Bitcoin’s NVT Ratio. The NVT indicator has performed with 100% accuracy […]
4 Warning Signs Bitcoin’s Going Lower
4 warning signs: After falling from a recent high of $8.8k, Bitcoin is currently trading at $7.7k. In this article, we will highlight four warning signs which may lead Bitcoin to lower levels. First, the chart above displays Bitcoin’s NVT Ratio. The NVT indicator has performed with 100% accuracy as a counter indicator since 2015. Each time price has fallen below the red channel, a substantial price decrease has occurred. This happened before Bitcoin fell from $20k and $6k in 2018. Now Bitcoin’s NVT indicator is reaching the critical 150 level. If Bitcoin’s NVT Ratio falls below support at 150 expect a large sell off.
RSI Bearish Divergence
Above is a chart of a bearish divergence seen in Bitcoin’s daily RSI. It is a very bearish indicator when the RSI of an asset is decreasing as price continues to increase or remain consistent.
Engulfing Bearish Candle on the Weekly
Last week, Bitcoin closed with an engulfing bearish candle. In classical technical analysis, when a bearish engulfing candle occurs after a doji candle, it is indicative of the top of an uptrend. Additionally, it signifies a trend reversal that will likely take us lower in the near future.
200MA Purged on the 4 Hour
In past articles, we have been following the four hour chart in detail. The 200MA (orange) has been a critical level of support throughout the entire May uptrend. If price cannot rise above this moving average in the near term, look for continued downward price action.
Cryptocurrency News
Popular cryptocurrency news site CCN is closing down due to a massive drop off in site traffic. Other crypto media news outlets have also seen a decline in site traffic as a result of Google’s new SEO update.
Conclusion
After Bitcoin topped at $8.8k, our primary indicators are giving us bearish signals. Resistance remains at $8k and $8.3k for the bulls. Critical support remains at $7.7k and $7.2k. If price should fall into the $6k price channel, look for oversold conditions to accumulate.