Bitcoin Forms Bearish Short-Term Technical Signs
Bitcoin has climbed a few percent higher since the recent lows around $10,400, to the point where just a day ago, BTC moved just shy of $10,800. The leading cryptocurrency currently trades for $10,740 as it tries to fend off another decline in the wake of the BitMEX news.
According to one trader, the coin is forming a series of bearish short-term technical signals. There purportedly are five signals that he spotted, meaning there’s a confluence indicating Bitcoin will move lower.
Signals in this confluence are as follows:
He added that Bitcoin has formed a CME futures gap to the downside, as a result of a rally over the weekend. Three-quarters of all of these gaps fill within the week they are formed.
Chart of BTC's price action over the past few days (since the start of October) with analysis by crypto trader Crypto Hamster (@CryptoHamsterio on Twitter). Chart from TradingView.com
The Resilience of BTC
While BTC does face these technical signs of downside, the asset has been extremely resilient over recent weeks.
Bitcoin is only down a few percent from its local highs despite the three following bearish news events: President Trump catching the disease spreading around the world, BitMEX charged by the CFTC over derivatives and anti-money laundering concerns, and KuCoin getting hacked for over $200 million in cryptocurrency.
Analysts say that the fact BTC is only down a few percent is a good sign that there is an underlying bid in the market.
Photo by Alex H. Pflaum on Unsplash Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Forms Series of 5 Worrying Signals Despite Reclamation of $10,700
Originally from Bitcoinist.com https://ift.tt/2GHMoIC
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