Bitcoin lost a long-term positive momentum amid the current bear market. Consequently, this may indicate a limited trade in the range for months; Which checks the level of news support. The cryptocurrency fell by almost 44% compared to the November record; From $69,000 to $38,900 on Tuesday afternoon. Bitcoin’s long-term and short-term momentum are in neutral territory; While the intermediate-term rate remains in the falling area.
According to Monday’s record, although Bitcoin avoided a confirmed crash below the $37,400 support level; The digital currency still experienced a long-term momentum; Because the MACD “sell” signal lit up. The monthly chart returns the “buy” signal for July 2020. The MACD indicator controls the moving average; however, the famous Golden Cross and Death Cross are separated between the 50 and 200-day moving averages. Instead, a follow-up indicator to the trend tracks the relationship between the two moving averages of the stock price.
Neutral long-term bias is now advisable because the monthly chart developed the MACD “sell” signal. Consequently, long-term impulse loss has an impact of six to twelve months. This suggests that Bitcoin may remain limited in range.
Bitcoin Sell Signals
The real downside of Bitcoin comes if it fails to capture the $37,400 support decisively. However, the support level will not be officially broken until the cryptocurrency closes below the group for two weeks in a row.
Although Bitcoin fell to $33,000 last week, it avoided a confirmed crash; The currency recovered and jumped over $37,400. However, if Bitcoin is retested and unable to maintain support levels, there will likely be even more downsides ahead. Below $37,400, Bitcoin’s next support is close to $27,200; The intermediate level is close to $30,000. This is a potential disadvantage from up to 30% of the current level.
Meanwhile, Bitcoin faces a significant resistance level near the 50-day moving average. At about $44,000, that represents a potential increase of 13% at current levels. Now experts will try to assess whether Bitcoin is ready for sunrise. An intermediate low rate will be determined when the weekly stochastic rate is above 20%.
Bitcoin’s current low rate is pushing investors to be more observant. Despite a difficult start to the year, some experts hope that this year will still be successful for the most popular digital currency.
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