Powerful sell signal in Bitcoin

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.

Bitcoin (BTC.CPT) Close: 44 832.00 (+1 935.11), May 18, 2021

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.