Bitcoin has fallen from 10 thousand 700 dollars to 10 thousand 500 dollars in the last 24 hours. So, are these bearish signs going for Bitcoin? An analyst mentioned 5 technical signals for Bitcoin.
On Twitter, a trader known as CryptoHamster shared some Bitcoin charts and analyzed bearish signs for Bitcoin. CryptoHamster listed 5 technical reasons for the bearish movement of Bitcoin below $ 10,700. Here are 5 technical reasons CryptoHamster has shown for the BTC drop:
- Bitcoin formed the “gravestone doji” candle on the 4-hour chart, marked by a long inverted wick. This wick is often interpreted as a sign that the asset is rejected from the range it is trying to enter.
- 9 sales candles appeared on the Tom Denmark Indicator. These 9 candles often herald the turning point of a trend.
- Bitcoin draws a triangle with the bottom of the local bottoms on the charts and encounters strong resistance at the upper edge of this triangle.
- On the 4-hour chart, bearish intersections are observed in the Stochastic RSI and Fisher Transform indicators. Both of these indicators signal a bearish trend.
- Bitcoin created a downside CME gap as a result of its rise over the weekend. Bitcoin tends to fill the CME gaps by 75%.
Bitcoin Not Broken, Standing
Despite all these negativities for Bitcoin, the leading coin has managed to stand firmly in the light of the events in recent weeks. First, KuCoin, one of the world’s leading crypto money exchanges, faced a $ 200 million hacking scandal. Later, BitMEX was sued by the US, and then US president Donald Trump announced that his coronavirus test was positive. After these successive developments, the eyes were turned on how Bitcoin will show.
Although Bitcoin has decreased to a certain extent, contrary to expectations, it was not affected by these developments to a great extent. BTC managed to keep its decline below 10% and did not lose the psychological threshold of $ 10 thousand. Most market analysts also agree that it is a good sign that the Bitcoin price is less affected by these events than expected.