Published 18 May 2021
A strong sell signal has been triggered in Bitcoin over the weekend.
The cryptocurrency increased sixfold from September last year to April this year. During this period, investors steadily paid more to get more Bitcoin, a number of high profile investors bought more and made positive comments, and optimism kept increasing. Bitcoin was in a rising trend channel and many investors imagined a further price increase seemingly without end.
Now the mood has changed. After a few weeks of more mixed news, investors this weekend pushed to get out of Bitcoin. This resulted in falling prices, and Investtech's algorithms have identified a sell signal from a head and shoulders formation in the price chart. It indicates that the rising trend is now over, that pessimism is rising, and that Bitcoin is entering a falling trend.
The fall in prices the last few days has been on increasing volume. This indicates that many investors are now very nervous. They no longer dare keep their Bitcoin, and are pushing to sell. Investtech's volume balance indicator is clearly negative and strengthens the sell signal from the head and shoulders formation.
A further fall for Bitcoin is indicated, and Investtech recommends selling the cryptocurrency. Initially, a fall to below $ 38,400 is indicated. There is little support before $ 20,000, however, so the downside is great.
Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.
Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.