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The largest cryptocurrency fell 4.9% on Thursday to $ 46,322.
Through Bloomberg
Bitcoin’s explosion above the $ 50,000 level did not last long, and the charts signal that its rally since July is likely to fade.
The largest cryptocurrency fell 4.9% on Thursday to $ 46,322, with other tokens including Ether retreating with the Bloomberg Galaxy Crypto Index. The drop reduced Bitcoin’s rally from a July 20 low to around 60%.
Bitcoin was trading at $ 47,342 at 10:10 a.m. in New York City.
John Bollinger, inventor of the Bollinger Bands, suggested in a tweet to take profit or hedge. Katie Stockton of Fairlead Strategies cited DeMark market timing indicators as signaling about two weeks of “sideways down” price.
Two charts summarize the current situation of Bitcoin.
Bandwidth reduction
The narrowing of the Bollinger Bands – a popular technical indicator that highlights volatility – – indicates that the Bitcoin rally is running out of steam and virtual currency is facing a resistance zone of $ 50,000 to $ 51,000. A key threshold to watch out for is the Bollinger Study’s midline at around $ 46,700.
It’s time to pay attention: $ BTCUSD Watch carefully, maybe take a profit or hedge a bit… Aggressive traders may think of selling short. Hodlers can watch additions at lower levels if we see them. No confirmation yet, just be on the lookout. #Bitcoin
– John Bollinger (@bbands) August 24, 2021
Point and number
A so-called points and numbers analysis – which sheds light on the direction of prices without a time dimension – signals that Bitcoin faces a challenge to move levels around $ 50,940 on a close basis. Failure to cross the 45 degree trendline of the dot and number chart could strengthen the bearish case.
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