Bear Market Indicators Returning as Bitcoin Dumps Below $7,800
The weekend brought a little hopium as Bitcoin prices topped $8,200 briefly, however the doom and gloom has returned on Monday morning as BTC has dumped back into the $7k region again. The longer term chart indicators are mounting up and they are all screaming bear market.
Bitcoin Slides Below $7,800
Following a weekend of relative stability above $8k BTC has started to slide again as we start another week in crypto land. According to Tradingview.com the decline to $7,760 a few hours ago marks a 5 percent loss over the past 24 hours.
BTC prices one hour chart – Tradingview.com
Bitcoin has now retouched its five month low and the technical indicators are looking ominous. The weekly candle closed on a red doji as pointed out by Josh Rager, however the indecisive formation is likely to be overruled by the bears this week.
$BTC – That weekly doji candle pic.twitter.com/8GSFtckyei
— Josh Rager
(@Josh_Rager) October 6, 2019
The fourth red weekly candle in a row has not happened for two years as volumes continue to decline. Additionally, BTC is now firmly below the 200 day moving average and this does not look good for the immediate future.
Trader ‘Cryptonaire’ pointed out that this is usually a sign of prolonged consolidation or further declines.
“NEVER has $Btc gone above or below the 200 MA and had an immediate pullback. There’s a 20% minimum move before going in opposite direction even if it’s just a wick,”
Fellow trader and analyst ‘Crypto Hamster’ made some similarities between the 2018 final dump into crypto winter.
“It is too obvious to be true, but I have to admit that the drop from 6k to 3k and the following price action indeed looks very similar to what we have now,”
It is too obvious to be true, but I have to admit that the drop from 6k to 3k and the following price action indeed looks very similar to what we have now (the scale is different, of course).$BCT $BTCUSD #bitcoin pic.twitter.com/HFt0DfydlD
— CryptoHamster (@CryptoHamsterIO) October 6, 2019
While a dump to $3k is still a long way off, $6k is looking closer every day as the bears gather strength. The negative sentiment for Bitcoin has been reflected in its market dominance which has fallen back below 70 percent. As reported by NewsBTC yesterday, this could be good news for the altcoins but at the moment they too are falling back on red Monday.
Altcoins Also in Pain
Ethereum has dumped back below $170 as it blindly follows the declines of its big brother. The ETH and BTC charts have been virtually identical over the past week or so as the world’s decentralized computer fails to decouple from its leader.
Ripple’s XRP is holding above $0.25 but it has shown nothing significantly bullish for most of this year and will take a monumental announcement or altcoin wide recovery to move higher.
Tether has topped BCH to take fourth place in terms of market cap as it trades at a slight premium while altcoins are dumped. At the time of writing only Chainlink is in the green and altseason is still a long way away.
Image from Shutterstock
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Martin Young, Khareem Sudlow