Bitcoin Forms Series of 5 Worrying Signals Despite Reclamation of $10,700

Bitcoin Forms Series of 5 Worrying Signals Despite Reclamation of $10,700

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  • Bitcoin underwent a strong drop last week on news of BitMEX getting charged by the U.S. CFTC.
  • The cryptocurrency fell from its $10,900 highs to a local low around $10,400. This marked a drop of around 5%.
  • Bitcoin has since recovered as legacy markets have moved higher, seemingly due to the potential for more stimulus and the safety of President Trump.
  • BTC may unfortunately revert lower as the asset forms pivotal short-term bearish technical signals.
  • So many signals appearing in tandem suggests that the cryptocurrency’s trend is bearish.
  • In addition to the pure technical signals, the coin has formed a CME futures gap over the weekend to the downside.

Bitcoin Forms Bearish Short-Term Technical Signs

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.
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.
Bitcoin has climbed a few percent higher since the recent lows around ,400, to the point where just a day ago, BTC moved just shy of ,800. The leading cryptocurrency currently trades for ,740 as it tries to fend off another decline in the wake of the BitMEX news.

  • Bitcoin has formed a “gravestone doji candle,” marked by a tall upside wick. This wick is a sign that an asset has rejected a range it was attempting to break into.
  • A Tom Demark Sequential “sell 9” candle. “9” candles as per the sequential are often seen at the inflection point of a trend.
  • Bitcoin undergoing a rejection at the upper bound of an ascending triangle that has formed from the local lows.
  • Bearish crossovers in the Stochastic Relative Strength Index and the Fisher Transform indicators on the four-hour chart. These two indicators are indicative of the trend.

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 ,700

Signals in this confluence are as follows:
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 0 million in cryptocurrency.
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

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.

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