Bloomberg is warning crypto traders about a bearish signal for Bitcoin.
The mainstream finance outlet says the global strength indicator, which determines the health of an asset by comparing the movement of the daily close, is posting its first sell signal since last summer.
The last time this signal flashed was in June of last year, when BTC hit a yearly high of $13,764 before falling 51% to a low of $6,649 in December.
Meanwhile, analyst Josh Rager says BTC’s recent close below its 200-day moving average may indicate that a short-term bounce is on the horizon. He’s drawing the $7,700 level as the next major line of support to watch.
“Daily closed under 200 DMA after an 8%+ drop. Could potentially see a push up before continuation down and watching the support at $8000 to $8200 for a bounce.
Break below $7700 would be bearish but not expecting it [to] drop that low at this point in time.”
Right now, the crypto markets are down. Bitcoin is at $8,545 at time of publishing, down 1.41% in the last 24 hours after reaching a high of $9,163 over the last seven days, according to CoinMarketCap.
Ethereum is down 0.75% at $165.89 and XRP is down 0.94% at $0.2315.
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