Analyst: Bitcoin Losing Steam, Could Fall Just as BTC Rallied Off $3,200 Bottom
Current Bitcoin Chart Looks Like The $3,200 Bottom Inversed
After days of inaction, Bitcoin (BTC) bears have finally shown their hand. In the past 24 hours, the leading cryptocurrency has shed around 2%, falling from a multi-day high of around $7,950 to $7,725 as of the time of writing this. While some are sure that Bitcoin will hold its ground, especially seeing that the asset has stabilized around $7,700 and losses are being contained, some are wary of a further decline.
In a recent tweet, an analyst going by the moniker of “RJ Killmex” noted that Bitcoin’s three-day chart is currently showing harrowing signs. RJ explains that Bitcoin is currently looking like it did at December’s $3,200 bottom but mirrored, or inverse rather. As seen below, Bitcoin is currently seeing a bearish divergence on its Relative Strength Index (RSI), marked by higher prices and a downtrend in the trend indicator. What’s more, the Moving Average Convergence Divergence (MACD) is about to flip red and cross below equilibrium.
The last time that the three-day MACD crossed equilibrium was in late-December, which was followed by a strong bull trend from March to late-May, during which Bitcoin rallied from $3,500 or so to $9,100 in a historic move. So, if history is any guide, BTC may be poised to reverse from here. RJ isn’t the only one expecting for a further move lower.
Per previous reports from Ethereum World News, analyst CryptoBirb remarked that BTC isn’t in a good place right now, having broken below a key medium-term parabolic trend (the one that supported the run from $5,000 to $9,000), a steep short-term uptrend, and the ever-important $8,000 level.
As trader Teddy adds, Bitcoin has been struggling to make a move on $8,000, let alone $8,200; and the asset has also struggled to close above the 21-day exponential moving average (EMA), a key trend line. This is purportedly a sign that the “daily [chart for BTC] is starting to look increasingly weaker”.
Bulls May Still Have Control of Crypto
Some have been a tad more optimistic though. Financial Survivalism explained that if Bitcoin manages to close its four-hour and daily candle above $7,615, he would be inclined to suggest that Bitcoin will continue a bull trend, as it would have broken above a descending bear channel.
On the fundamental side of the cryptocurrency equation, ThinkMarkets’ Naeem Aslam has stated that he expects for the impending launch of Globalcoin’s (Facebook’s crypto) white paper to be a positive “catalyst” for the value of BTC. In a recent Forbes post, he added that Bitcoin still has the fuel to jet past $10,000, despite the recent developments in the underlying spot market.