The world of bitcoin has been quiet lately.
The King of the Cryptocurrencies hasn’t been doing much of anything lately. Its price has been stuck between $10,000 and $11,000 per coin for the past few weeks. And that lack of activity has quieted all of the formerly vocal financial TV talking heads.
But, they’re not going to stay quiet for much longer. Bitcoin looks like it’s on the verge of another BIG move. And unlike the big move higher we were looking for back in February, the setup today looks bearish.
Here’s the chart…
We turned bullish on bitcoin back in February, in part because the various moving averages had crossed into a bullish configuration – with the short-term 9-day and 20-day exponential moving averages (EMAs) crossing above the 50-day moving average (MA). This sort of “bullish cross” often occurs just as a chart starts an intermediate-term rally.
And that rally played out quite well – with bitcoin gaining more than 200% in five months.
Now, though, the situation is nearly the exact opposite of what it was in February.
All of the various moving averages have shifted to a bearish configuration. The 9-day and 20-day EMAs have just crossed below the 50-day MA. This sort of “bearish cross” often marks the start of an intermediate-term decline phase.
It doesn’t have to play out that way, of course. If bitcoin can mount a strong rally over the next few days, then that might be enough of a move to get the moving averages to cross back over into a bullish configuration. But, if that is going to happen, then it needs to happen right now.
The longer the short-term exponential moving averages remain below the 50-day moving average, the more likely this bearish pattern stays intact, and the more likely the next big move for bitcoin will be to the downside.
Best regards and good trading,
Where do you think bitcoin is headed, up or down? How have you been trading bitcoin?
Let us know, along with any other trading stories, questions, or comments at [email protected].
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