Traders who use technical charts to judge future price trends find that more indicators suggest that the world’s largest digital currency may fall further.
Bitcoin’s 50-day moving average fell to its nearest level within 200 months from the 200-day moving average. A break below this level will be the first time since 2015, and the technical analyst trader will call this the “death cross”. Predicting that the trend will further weaken. Another moving average indicator reflecting the trend has turned bearish.
Although many digital cryptocurrency investors do not follow technical analysis, the digital currency sector is attracting interest from professional traders. After Bitcoin prices surged to a record level in December last year, these professional traders are increasingly paying attention to technical indicators. .
'After the bubble activity at the end of 2017, the trend has clearly shifted in the past few months,' said Paul Day, technical analyst and futures and options manager at Market Securities Dubai Ltd.
The strategist studied the fall of bitcoin as a virtual currency in 2013 to find out the clues of how Bitcoin will perform this time. His conclusion? If you reproduce the decline in 2013, prepare Bitcoin from 2 The high of the end of the month fell 76%, which means Bitcoin prices will fall to a negligible 2800 US dollars.
Another indicator that the trend is weak is the MACD, a measure of price movements to send buy and sell signals.
In any case, bitcoin investors are best suited to the fluctuations in bitcoin prices.
In the first 10 months of 2015, when the 50-day moving average was lower than the 200-day moving average, Bitcoin performance was sluggish. During that period, Bitcoin fell by 5.2%, and then from that day to the end of this resistance level. Rose by 43%.
Since 2015, the 50-day moving average has remained on the 200-day moving average and has risen for three consecutive years in the process.