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Bitcoin

BTC Falls Through Key Average as Traditional Markets Hit Record Highs

November 16, 2019 at 4:07 PM | By Jit Sutradhar Markets

Look

  • Strong performance in traditional assets and a lack of new reasons to buy crypto is depressing prices this BTC.
  • The loss of the 50-day moving average price level exposes $ 8,000.
  • Daily RSI showed that the momentum slowed down, which may imply a greater selling pressure in the short term.

Bitcoin (BTC) is at risk of another sell-off after the price fell below key moving average on Nov. 15, a relatively strong performance with traditional assets attract investors.

According to Jeff Dorman, CIO at Arca, an investment management company dealing in digital asset, BTC decline in prices is inversely proportional to the strength of the global market, including the DJIA record highs this week.

“Volume is low, no new money is coming into the ecosystem, and stocks, bonds and gold all up double-digit year-to-date non-crypto make the focus of the world lost,” said Dorman.

Daily graph

Daily graph

At 14:00 UTC, BTC fell 2.1 percent to penetrate the 50-day moving average (MA), flagging the potential for a withdrawal over 25 Oct peak of $ 10,350.

The loss of the 50-day MA means the price of BTC could fall through the $ 8,000 level, and when combined with a long-term bear towering cross on the 100 and the 200-day MA, can confirm the bearish long-term indicator.

In addition, RSI, momentum traders measurement and sentiment, does not exceed the neutral line at 50.00 after falling below that point on November 10, hinted at a greater selling pressure next week.

Total daily volume remained flat since 12 of November, which means that no new reason to buy or sell.

Dorman said the sentiment of traders today have less to do with the negative events and more to do with the lack of positive catalysts, but the case remains strong for the bulls.

“For Bitcoin, trying to perfect timing risk,” he said.

Disclosure: The author does not hold cryptocurrency assets at time of writing.

Bitcoin image via Shutterstock; chart by Trading View

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