- BTC/USD 100 MA line crosses the 200 MA line in a rather stagnant market.
- A dying market? Daily trading volumes recorded on BitMEX BTC futures below $1 billion USD.
The current cryptocurrency market is struggling to get its feet up and running as the top coin, Bitcoin (BTC) continues to struggle against the green buck. Trading at $8569 as of Nov. 17 12.03 pm EAT, the price of BTC has risen slightly over the past 24 hours, about 0.06%, in a largely unmoved market. However, bearish technical indicators forming on charts and the drop in volumes traded spells doom for the pioneer cryptocurrency – at least in the short term.
Bearish signals: BTC/USD 100 SMA crosses the 200 SMA line
The overall market sentiments on BTC is rather bearish as yet another indicator predicts a bearish reversal on BTC/USD. The 100 SMA line crossed below the 200 SMA line following the gradual price drop of BTC over the course of November.
First the 50MA crossed the 200MA
Now the 100MA crosses the 200MA
Haven't seen a bull out here for the past few days. 🤷♂️ pic.twitter.com/NhllLz81AD
— Pick A Crypto | FA & TA | Amateur Trader 💰 (@PickACrypto) November 17, 2019
The 50 SMA line crossed below the 200 SMA line on Nov. 7 and with movement of 100 SMA also oscillating below the long term moving average, a bearish trend may be on the cards for the BTC/USD pair.
Looking at the daily charts, the bulls are struggling to take over the market since the downtrend began in July this year. While the price tested the bearish channel resistance at $10,500 USD on October 26th, following China’s president speech on embracing blockchain, the price has dropped below the minor support/resistance level at $8,770 USD, signaling a possible push downwards towards major support levels at $7, 500 USD.
A weak market signals doom for BTC/USD
Bulls have disappeared from a raging market as bears try to fully regain control in the BTC/USD pair. However, the overall volumes in market have reduced as BitMEX exchange had one of the worst trading days in the past month – witnessing its BTC margin trading for XBT/USD futures drop below $1 billion.
This might be the lowest volume and volatility day the crypto industry has seen in a loooong time. I can't remember the last time BitMEX traded under $1B and Bitfinex under $50m.
— SBF (@SBF_Alameda) November 17, 2019
Notwithstanding, the daily volatility of Bitcoin is aiming towards its all-time lows which has left most traders fearful of the future of BTC/USD. Currently at around $790 million, bulls will need to see a spike in trading activity and increased volatility to witness a possible hike in price.
A close below support levels at $8,100, $7,980, and major support at $7,500 USD may signal a push towards pre-July prices be below $6,500. A break above the bearish channel however, is a very bullish signal on BTC/USD pair.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.