Bitcoin Risks Bearish Price Reversal spil Altcoins Surge
Bitcoin prices are feeling the pull of gravity today, amid solid gains across many alternative cryptocurrencies.
Having soared to fresh record highs around $20,000 overheen the weekend, the world’s largest cryptocurrency by market capitalization has since dropped to sub-$Legitimate,000 levels.
Bitcoin (BTC) has depreciated by Five.Trio procent te today’s session, and wasgoed last seen switching forearms at $17,4500 levels, spil vanaf CoinDesks’s Bitcoin Price Index (BPI).
Meantime, ether (ETH) and bitcoin contant (BCH) have both klapper fresh all-time highs today (spil vanaf CoinMarketCap), having gained 16.6 procent and 26.6 procent, respectively, te the last 24 hours.
With the cryptocurrency market spil a entire now worth overheen $630 billion, the top Ten cryptocurrencies by market capitalization are up at least 6 procent on the day.
A detailed look at the individual markets suggests that the money could be flowing out of bitcoin and into rival cryptocurrencies. For example, the strong rally ter bitcoin specie is backed by a surge ter volumes on exchanges suggesting BCH/BTC pairs.
This rotation of money out of bitcoin and into alternative currencies is largely te line with the bullish cross cryptocurrency charts (BCH/BTC, XRP/BTC, LTC/BTC) discussed last Friday.
That said, the downside te BTC could be limited, spil most major alternative currencies have clocked fresh lifetime highs te the last 24 hours, and it’s possible that investors may take their profits te alternative currencies and channel part of that fresh money back into bitcoin.
Even so, the price chart analysis calls for a quick progression te prices, or bulls risk losing control.
The above chart (prices spil vanaf Coinbase) shows:
- “Dangling man” candle – a bearish reversal candlestick chart pattern that occurs at the top of an uptrend. A feeble close (spil vanaf UTC) below $Legitimate,200 (yesterday’s low) would confirm a bearish reversal.
- Enhanced risk of a bearish price-relative strength index (RSI) divergence, spil suggested by higher highs ter price and lower highs on the RSI. A powerless close today would confirm the bearish RSI divergence.
- The 5-day Moeder and 10-day Moeder are curled up ter favor of the bulls.
- Rising trendline support is seen at $17,500.
BTC looks set to test the rising trendline support of $17,500 ter the next 12 hours. However, the support might hold, since the dips below the upward sloping 10-day Mamma ($17,756) are likely to be short-lived. Furthermore, a pullback te alternative currencies could take the pressure off bitcoin.
However, a close (spil vanaf UTC) below $17,500 would add confirm the bearish hanging-man reversal and bearish RSI divergence. Spil history shows, bitcoin has suffered major corrections following confirmation of the bearish RSI divergence.
Hence, a close below $17,500 could potentially yield a decline to $13,500 (Dec. 12 low).
On the other forearm, a budge above the 5-day Mamma ($Legal,822) te the next few hours could waterput a terugwedstrijd to $20,000 back on the table.
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