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Bitcoin's `Death Cross' Looms as Strategist Eyes $2,800 Level

Published 03/15/2018, 08:01 PM
Updated 03/19/2018, 03:31 AM
© Bloomberg. Two coins representing Bitcoin cryptocurrency sit on a computer circuit board in this arranged photograph in London, U.K., on Tuesday, Feb. 6, 2018. Cryptocurrencies tracked by Coinmarketcap.com have lost more than $500 billion of market value since early January as governments clamped down, credit-card issuers halted purchases and investors grew increasingly concerned that last year’s meteoric rise in digital assets was unjustified.

© Bloomberg. Two coins representing Bitcoin cryptocurrency sit on a computer circuit board in this arranged photograph in London, U.K., on Tuesday, Feb. 6, 2018. Cryptocurrencies tracked by Coinmarketcap.com have lost more than $500 billion of market value since early January as governments clamped down, credit-card issuers halted purchases and investors grew increasingly concerned that last year’s meteoric rise in digital assets was unjustified.

(Bloomberg) -- The tea leaves don’t bode well for Bitcoin.

Traders who look for future price direction in chart patterns are finding more indicators suggesting the world’s largest digital currency may have further to fall.

Bitcoin’s 50-day moving average has dropped to the closest proximity to its 200-day moving average in nine months. Crossing below that level -- something it hasn’t done since 2015 -- signals fresh weakness to come for technical traders who would dub such a move a "death cross." Another moving-average indicator of momentum has already turned bearish.

While many cryptocurrency investors don’t follow technical analysis, the digital-coin universe is drawing interest from professional traders who pay growing attention to the indicators, after the token vaulted to a record in December.

“There’s been a definitive shift over the past couple of months after the bubble activity at the end of 2017,” said Paul Day, a technical analyst and head of futures and options at Market Securities Dubai Ltd.

The strategist studied the virtual currency’s 2013 tumble for clues on how it may act this time round. His conclusion? Gear up for a 76 percent tumble from late February highs, which would take Bitcoin to a paltry $2,800, if the downtrend is repeated.

Another gauge that suggests weakness is the moving average convergence-divergence indicator, which measures price momentum to flash buy and sell signals.

Regardless, Bitcoin investors had better make peace with volatility.

When the currency’s 50-day moving average last hovered below the longer measure, during the first 10 months 2015, its performance was lackluster. It fell 5.2 percent in that period, and then rallied 43 percent through year-end from the day it broke back above the resistance level.

It has remained above that line ever since 2015 and racked up three successive annual gains in the process.

© Bloomberg. Two coins representing Bitcoin cryptocurrency sit on a computer circuit board in this arranged photograph in London, U.K., on Tuesday, Feb. 6, 2018. Cryptocurrencies tracked by Coinmarketcap.com have lost more than $500 billion of market value since early January as governments clamped down, credit-card issuers halted purchases and investors grew increasingly concerned that last year’s meteoric rise in digital assets was unjustified.

Latest comments

same news, looking like you want it dawn :)
Thanks
Same news lol
over posting..wall street afraid
How many times is this same article going to be pinned to the top of the crypto news feed!!??
I would welcome a drop to $2800 or even lower. IMO there was way too much hype and people piling in due to FOMO and just trying to make a quick buck. Now, I am not saying I didn't take advantage of the crazy price action last year because I did. But what I think will happen is that cryptos will keep dropping, maybe to around $6000 to re-test the low set in Feb. or maybe even lower, $4000, $2000, whatever. At some point, they will find a bottom and consolidate, all those just looking for a quick buck who thought it was going to go to $100,000 in a year will get bored and leave. Then the "smart money" will come in and start buying, start accumulating for the next bull market. Right now I hold very little crypto compared to last year, other than an occasional trade I am willing to wait and then start slowly buying back in.
This story keeps getting renewed on the feed to overshadow anything positive. Crypto is growing faster than governments can control. Bad for them good for us. Total FUD
i hope it drops back to 700 lol
Smh poor kid, and but even if it does you still won't buy because of fear
Do not be fooled every market will always go up and down but you are all crazy if you don't think that the creator of bitcoin is another perfect strategy the world elites made to shock wave the economys of the world to find out where most of the population stood with the idea of a world digital currency and as an all out general census of who got what and how much to gamble. Then they do what they always do turn the prices up where people were not struggling and centralize the
Bitcoin is not much of a technical asset It has never been
its not an asset. its not anything, and its inherently worthless.
30% of Bloomberg is owned by Merrill lynch. They have reason to spread fud. They don't name the analysts. All the traders in crypto see it going as low as 6k. The mt gox trustee market sold 18000 bitcoin and that absorbed at 6k.
Sounds like a perfect place to buy. I see it as a second chance for those who didn't buy it back when it was cheaper.
Exactly what I was thinking too.
The looming regulators are not far away. I wouldn't touch it with a barge pole.
I agree with you. I think it might be a good chance to reaccumulation of bitcoin wallets
Any support to downtrend
Just let it die already. The only value these over-hyped chuckie cheese tokens ever had was people's natural drive for mob mentality and fear of missing out. At these levels, miners aren't even breaking profit anymore
Ain’t this the truth. Chuckle cheese coins. I like it lol.
Ohh..you mean like the FRN IOU NOTES? If you believe that then you have no clue what money actually is! Keep putting your faith in monopoly money backed by nothing!
 what is cripo back by? its not even regulated
The technical analysis shows $6000 more exactly $5990, as our next support, this ********wants to trigger mass sell off after that support with FUD but don’t worry it’s going to be the last time seeing $6000, I’ll make sure to see the updates with you
Nice
Please show us this technicals that’s shows $2800 and the analystes
 Needs to hold $6000 otherwise next support is ~$2800. DYOR
I guess its time to sell my shares
Stay away for a while, fall is too sharp and there is no one day ascend and kept it going higher. While its getting lower, bid on the floor per day it may get there.
Bitcoin prices is not about trading. Is all about mining. Miners who mined coins 2 years ago for less the zero are now selling cheap for 9k per coin. Actually at same time they are mining and holding new coins now to sell 2 years later for 10 or 100 Times more
Storyboard is just repeating... Now with the new Bitcoin light network it Will explode prices
I would say bitcoin is a wothless piece of ****but hello even a ****have some value bitcoin no
You are the ONLY One with zero value to me Marek. Yes i Bought for 220€ on 2015 and how easly exchange it for Higher prices then the currency market prices right now. With 1 or 2 Btc you can have a 20 k banck account on any Fiat currency, a carteira, a house...
 good time for you to sell before you loose it all :D but i know easy money come easy money goes
That Will not happen..sorry!
Heyy people dont u cant see this is just an orquestration ordered to bring down Bitcoin prices. Someone who is playing God, or more powerfull then average man in material resoyrces, who is very stupid, listenning adviser guiddance ONLY. Some one who hold ONLY Fiat dollars and use the Drop of other Fiat to make more dollars. Someone who live with this Simple way of controling Banks, selling orders of costuumers to others Banks or market makers cant accept Bitcoin because they cant do that game on Bitcoin dont work. They are furious and they dont know how to bons Bitcoin só they are just in a strategy since now more intense as Bitcoin prices goes Higher and higher
Stop this from popping up on my feed. annoying as h- ll
There's a trader that put call thinking that bitcoin will soar 50k when it was 19000....now he's crying probably
he’s probably buying more calls
When it moves up, it's going to happen so fast there won't be enough coins available to cover all the short money out there. At this point anyone coming in with a billion dollars could corner the whole market.
Why keep reposting this on the hour. Trying to get back in
Exactly.. if every is selling Bitcoin 8500€ you real cant avoid sell..just do a favor to your self instead sell that price ..out the price Higher Well, we can create new rules to market they need some regulation yes such as: If some buy a very big lot then: Price Will automaticly increase 100x but if low volume price just grow 10x
All the "Big Money" have their buy limits/calls @ $3000. Sell Sell Sell
Unless you have Bought from 1 to 200€ lolololol and those até who hold more and make price stable..miners
Bitcoin prices is not about trade...os about mining..it cost zero to miners few years ago thats why you buy cheap now for 9k...those mined now Will BE sold later for 10 to 100 more
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