Bitcoin (BTC) experienced a strong drop last week on top of the BitMEX incident. The cryptocurrency has experienced a decline from its highest level of $ 10,900 to around $ 10,400. This indicated a decrease of approximately 5%.
Bitcoin also recovered as traditional markets improved, apparently due to more incentive potential and the security of President Donald Trump. But BTC fell again last night after Trump announced that he was delaying the stimulus package talks after the election.
As the cryptocurrency creates important short-term bearish technical signals, it may unfortunately return to lower levels. Many signals after another indicate that the trend of the cryptocurrency is downward. In addition to pure technical signals, the coin created a downside CME futures gap over the weekend.
Short-Term Technical Signals Show a Bearish Trend
Bitcoin has risen slightly since the last lows of around $ 10,400. BTC made a shy move towards $ 10,800 just a day ago. The leading cryptocurrency is currently trading at $ 10,610 while trying to prevent another decline following the BitMEX news.
According to a trader, the coin is generating a series of short-term technical signals. According to his claim, there are five signals he has detected, that is, signals that Bitcoin will move lower.
These negative signals are as follows:
- Bitcoin has formed an “inverted umbrella candlestick” (mezzanine doji) marked by a long reverse wick. This is a sign that an entity has rejected from an interval that it is trying to enter.
- 9 candles of the Tom Demark Sequential formation. Candles “9” in order are often seen at the turning point of a trend.
- Bitcoin is undergoing a rejection at the top of a rising triangle of local lows.
- Bearish intersections in the Stochastic Relative Strength Index and Fisher Transform indicators on the four-hour chart. These two indicators are indicative of the trend.
Bitcoin formed a downside CME futures deficit as a result of a rise over the weekend.
Although BTC has faced these technical negative symptoms, the asset has been extremely resilient in recent weeks. Despite the following negative news, Bitcoin only experienced minor setbacks:
US President Donald Trump caught Covid-19.
BitMEX was blamed by the CFTC for derivatives and anti-money laundering concerns.
KuCoin suffered a $ 200 million hacking scandal.
Analysts say the fact that BTC has not suffered a serious drop despite these events is a good sign that it is a fundamental offer in the market.