Bitcoin has been losing trend consistently. As a result, one of the long-term technical indicators of Bitcoin is looking bearish.
The technical indicator which we are speaking about now is the five month moving average. The 5-month moving average is about to roll over into the bearish territory. It is going to cut the 10-month moving average from above and move downwards. This crossover is considered to be a negative one. It is the 1st such crossover since 2014. If indeed, the five-month moving average more is below the 10-month moving average, it will be very worrying for cryptocurrency investors. When that happened in June 2014, Bitcoin fell by approximately 70%. For a consistent 7 months, Bitcoin was falling after that.
Under the current circumstances, at the end of this month, the five-month moving average will be moving lower and extending below the 10 month moving average. This will further deepen the pain in Bitcoin. This also indicates that Bitcoin will head to $ 7000. Subsequently, it can lead to even lower levels of $ 5000.
Monthly chart of Bitcoin:
According to the monthly chart of Bitcoin, the five month moving average is around $ 8916. Similarly, the 10-month moving average is around $ 8379. Bitcoin currently is trading around $ 7820. Thus, if it closes the month around these levels, the 5-month moving average will surely lower.
Daily chart of Bitcoin:
Bitcoin Cash (BCH)
Bitcoin Gold (BTG)
On the daily chart of Bitcoin, it is making the pattern lower highs and lower lows. As a result, it is showing bearish trend on the daily chart of Bitcoin as well. Also, the relative strength index on the daily chart of Bitcoin is below 50. This clearly indicates that it is in the bearish territory.
Weekly chart of Bitcoin:
Bitcoin is trading just over the 50 day moving average. This has on the weekly charts. The 50-day moving average is around $ 7620. If indeed, but moves are on a weekly basis as well, it will surely trigger a sell-off once again. The sell-off will be much deeper as well. As a result, it will be difficult for Bitcoin to recover in the next few months.
Thus, if you’re a cryptocurrency trader or investor, now is the time to pay attention to the technical charts. If indeed, the five-month moving average more is below the 10-month moving average, it will indicate intermittent bearishness. In such a case, it will be a good idea to keep away from Bitcoin for the shorter term.