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Bitcoin has fallen to its lowest level in ten months following a series of sharp declines.
$BTC has fallen below $75,000 with the latest wave of decline that began over the weekend, and the drop is expected to continue further.
At this point, one analyst stated that Bitcoin has entered a downtrend that could last for months, arguing that it could fall to around $50,000.
According to Eric Crown, a former NYSE Arca options trader who spoke to Coindesk, Bitcoin has entered a downtrend that could last for months.
Eric Crown argues that long-term technical indicators are signaling a decline, and that this move is consistent with the downtrend that began in October.
At this point, Crown notes that Bitcoin has been in a sideways or downward phase since the end of October, and that optimism about new highs or a return from precious metals to crypto is misplaced “over-optimism” for the bulls.
Brown, who expects even bigger declines, stated that $BTC could fall below $60,000, or even as low as $50,000.
Bearish Signals in Bitcoin!
The analyst noted that Bitcoin has been trending sideways and downwards since last October, pointing to various technical indicators that, according to historical data, foreshadow deeper corrections.
Crown, first pointing to the death cross in the monthly MACD, said the monthly MACD indicator showed a downward cross in November. This is a rare signal that has foreshadowed prolonged declines in previous cycles.
Secondly, Crown pointed to its 21-day and 55-day weekly moving averages (EMA), noting that these also gave bearish signals.
According to Crown, the weekly 21/55 EMA also recently crossed into bearish zone. When this happens, it is usually followed by losses lasting several months.
Crown also added that investors generally sell speculative assets first, and that after the largest forced liquidation event last October, investors were hesitant to re-enter positions.
*This is not investment advice.
coindesk.com
u.today
beincrypto.com