Bitcoin Technical’s: MA ‘Death Cross’ Looms
The Death Cross pattern does not augur well for Bitcoin.
While many cryptocurrency investors do not follow technical analysis, the digital-coin world is drawing interest from professional traders who pay attention to the technical indicators, after the token vaulted to a record in December on the entry of the Chicago Merc (CME) and the Chicago Board of Exchange (Cboe) that brought on futures and options in Bitcoin
Technical traders study the virtual currency’s Y 2013 tumble for clues on how it may act this time round.
The Big Q: What is the conclusion?
The Big A: Get ready for a 76% Fibo retracement from late February highs, which would see Bitcoin at $2,800, if/when the downtrend occurs.
Another gauge that suggests weakness is the MA convergence-divergence indicator, which measures price momentum to flash Buy/Sell signals.
Bitcoin traders are happy with the volatility, investors need nerves of steel and deep pockets to boot.
When Bitcoin’s 50-Day MA last hung below the 200-Day measure, during the 1st 10 months Y 2015, its performance hohum. It fell 5.2% in that frame, and then rallied 43% through year-end from the day it broke back above the Key resistance mark.
Since then Bitcoin has remained above that line, and posted 3 successive annual gainers in the process.