Cryptocurrency markets have been in for a bit of a battering for the last few weeks. There are many reasons for this including scam icos, regulatory matters, and the general jitters of a nervous market. By now we all know that where bitcoin leads, the others follow. There can be no doubt that bitcoin investors have suffered loses and I suppose a painful one at that.
Sentiments and comments in the community indicate a bearish sentiment. The omens are not encouraging. As commentators have said, the technical indicators are mixed. This has mostly come from those trading with Simple Moving Averages (SMA). You all know by now that I favour the Ichimoku clouds. I have also taken the trouble to include the RSI (Relative Strength Index), another indicator I like.
Looking at the 4-hour bitcoin chart shows you that this is bearish all the way. The candlesticks are under the cloud as well as the tenkan and kijun sen lines. Sekou Span B is also above Sekou Span A further validating the bearish sentiment. The RSI mirrors the Ichimoku Cloud clearly showing the oversold positions. The 1-day chart has shown indecisive activity for a few days. This is because the candlesticks were within the cloud for a few days before breaking through. The RSI also mirrors this indecisiveness; nevertheless, the RSI is heading to an oversold position. In other words, it is bearish. Some commentators have talked about support at $6500. I think it is more $6744 but I hate to make such predictions.
We must never forget that the crypto markets are very fickle and one announcement could change everything. This is why I generally conclude with the following – your guess is as good as mine.
PS. As of the time of posting this blog piece, Bitcoin has fallen to US$7408.
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