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Bitcoin's `Death Cross' Looms as Strategist Eyes $2,800 Level

Cryptocurrency NewsMar 19, 2018 03:31AM ET
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© Bloomberg. Two coins representing Bitcoin cryptocurrency sit on a computer circuit board in this arranged photograph in London, U.K., on Tuesday, Feb. 6, 2018. Cryptocurrencies tracked by Coinmarketcap.com have lost more than $500 billion of market value since early January as governments clamped down, credit-card issuers halted purchases and investors grew increasingly concerned that last year’s meteoric rise in digital assets was unjustified.

(Bloomberg) -- The tea leaves don’t bode well for Bitcoin.

Traders who look for future price direction in chart patterns are finding more indicators suggesting the world’s largest digital currency may have further to fall.

Bitcoin’s 50-day moving average has dropped to the closest proximity to its 200-day moving average in nine months. Crossing below that level -- something it hasn’t done since 2015 -- signals fresh weakness to come for technical traders who would dub such a move a "death cross." Another moving-average indicator of momentum has already turned bearish.

While many cryptocurrency investors don’t follow technical analysis, the digital-coin universe is drawing interest from professional traders who pay growing attention to the indicators, after the token vaulted to a record in December.

“There’s been a definitive shift over the past couple of months after the bubble activity at the end of 2017,” said Paul Day, a technical analyst and head of futures and options at Market Securities Dubai Ltd.

The strategist studied the virtual currency’s 2013 tumble for clues on how it may act this time round. His conclusion? Gear up for a 76 percent tumble from late February highs, which would take Bitcoin to a paltry $2,800, if the downtrend is repeated.

Another gauge that suggests weakness is the moving average convergence-divergence indicator, which measures price momentum to flash buy and sell signals.

Regardless, Bitcoin investors had better make peace with volatility.

When the currency’s 50-day moving average last hovered below the longer measure, during the first 10 months 2015, its performance was lackluster. It fell 5.2 percent in that period, and then rallied 43 percent through year-end from the day it broke back above the resistance level.

It has remained above that line ever since 2015 and racked up three successive annual gains in the process.

Bitcoin's `Death Cross' Looms as Strategist Eyes $2,800 Level
 

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Rami Abdulaziz
Rami Abdulaziz Mar 19, 2018 12:58AM ET
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same news, looking like you want it dawn :)
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sweet boy
sweet boy Mar 18, 2018 5:10PM ET
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Thanks
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0 0
emanuel sousa
emanuel sousa Mar 18, 2018 11:13AM ET
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Same news lol
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0 0
Mar 18, 2018 5:38AM ET
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over posting..wall street afraid
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1 0
matthew cahalan
matthew cahalan Mar 18, 2018 2:51AM ET
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How many times is this same article going to be pinned to the top of the crypto news feed!!??
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4 1
Donald Hancock
Donald Hancock Mar 17, 2018 4:32PM ET
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I would welcome a drop to $2800 or even lower. IMO there was way too much hype and people piling in due to FOMO and just trying to make a quick buck. Now, I am not saying I didn't take advantage of the crazy price action last year because I did. But what I think will happen is that cryptos will keep dropping, maybe to around $6000 to re-test the low set in Feb. or maybe even lower, $4000, $2000, whatever. At some point, they will find a bottom and consolidate, all those just looking for a quick buck who thought it was going to go to $100,000 in a year will get bored and leave. Then the "smart money" will come in and start buying, start accumulating for the next bull market. Right now I hold very little crypto compared to last year, other than an occasional trade I am willing to wait and then start slowly buying back in.
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0 1
matthew cahalan
matthew cahalan Mar 17, 2018 3:39PM ET
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This story keeps getting renewed on the feed to overshadow anything positive. Crypto is growing faster than governments can control. Bad for them good for us. Total FUD
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3 1
Max Rochester
Max Rochester Mar 17, 2018 3:03PM ET
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i hope it drops back to 700 lol
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3 1
Rararr Chao
Rararr Chao Mar 17, 2018 3:03PM ET
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Smh poor kid, and but even if it does you still won't buy because of fear
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4 2
كريستوفر أورورك
كريستوفر أورورك Mar 17, 2018 2:38PM ET
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Do not be fooled every market will always go up and down but you are all crazy if you don't think that the creator of bitcoin is another perfect strategy the world elites made to shock wave the economys of the world to find out where most of the population stood with the idea of a world digital currency and as an all out general census of who got what and how much to gamble. Then they do what they always do turn the prices up where people were not struggling and centralize the
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Omid Navid
Omid Navid Mar 17, 2018 12:50PM ET
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Bitcoin is not much of a technical asset It has never been
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Omar Zaghloul
Zaghloul Mar 17, 2018 12:50PM ET
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its not an asset. its not anything, and its inherently worthless.
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0 1
Jay Tann
Jay Tann Mar 17, 2018 12:19PM ET
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30% of Bloomberg is owned by Merrill lynch. They have reason to spread fud. They don't name the analysts. All the traders in crypto see it going as low as 6k. The mt gox trustee market sold 18000 bitcoin and that absorbed at 6k.
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3 0
Sergio Perez
Sergio Perez Mar 17, 2018 10:54AM ET
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Sounds like a perfect place to buy. I see it as a second chance for those who didn't buy it back when it was cheaper.
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2 0
Josef Roy Advincula
Josef Roy Advincula Mar 17, 2018 10:54AM ET
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Exactly what I was thinking too.
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0 0
Paul Carpenter
Paul Carpenter Mar 17, 2018 10:54AM ET
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The looming regulators are not far away. I wouldn't touch it with a barge pole.
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baccar adam
baccar adam Mar 17, 2018 10:54AM ET
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I agree with you. I think it might be a good chance to reaccumulation of bitcoin wallets
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sushant gaikwad
sushant gaikwad Mar 17, 2018 10:52AM ET
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Any support to downtrend
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Cristian Chibato
Cristian Chibato Mar 17, 2018 10:23AM ET
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Just let it die already. The only value these over-hyped chuckie cheese tokens ever had was people's natural drive for mob mentality and fear of missing out. At these levels, miners aren't even breaking profit anymore
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1 1
Josh Winter
JWinter Mar 17, 2018 10:23AM ET
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Agreed!
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0 0
Santos Gomez
Santos Gomez Mar 17, 2018 10:23AM ET
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Ain’t this the truth. Chuckle cheese coins. I like it lol.
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Cody Brewer
Cody Brewer Mar 17, 2018 10:23AM ET
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Ohh..you mean like the FRN IOU NOTES? If you believe that then you have no clue what money actually is! Keep putting your faith in monopoly money backed by nothing!
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Max Rochester
Max Rochester Mar 17, 2018 10:23AM ET
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Cody Brewer what is cripo back by? its not even regulated
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2 0
Hamza Hachim
Hamza Hachim Mar 17, 2018 10:03AM ET
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The technical analysis shows $6000 more exactly $5990, as our next support, this ********wants to trigger mass sell off after that support with FUD but don’t worry it’s going to be the last time seeing $6000, I’ll make sure to see the updates with you
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Oliver Rios
orios01 Mar 17, 2018 10:03AM ET
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Put on ema 10 20 50 200 look at the chart on a yearly basis. When slower moving averages pass faster ones it's the mark of a down trend. This article is pointing out that a black hole 200 crossing the 50 is near. Momentum wise the more gravity is fought the harder gravity will pull you inward
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Jason Williams
Jason Williams Mar 17, 2018 10:03AM ET
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Nice
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0 0
Hamza Hachim
Hamza Hachim Mar 17, 2018 10:03AM ET
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Please show us this technicals that’s shows $2800 and the analystes
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Edi Vancina
Edi Vancina Mar 17, 2018 10:03AM ET
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Hamza Hachim Needs to hold $6000 otherwise next support is ~$2800. DYOR
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Michael Williams
Michael Williams Mar 17, 2018 10:02AM ET
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I guess its time to sell my shares
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GQED Grant
GQED507 Mar 17, 2018 9:17AM ET
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Stay away for a while, fall is too sharp and there is no one day ascend and kept it going higher. While its getting lower, bid on the floor per day it may get there.
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0 0
Mar 17, 2018 8:15AM ET
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Bitcoin prices is not about trading. Is all about mining. Miners who mined coins 2 years ago for less the zero are now selling cheap for 9k per coin. Actually at same time they are mining and holding new coins now to sell 2 years later for 10 or 100 Times more
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2 0
Mar 17, 2018 8:10AM ET
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Storyboard is just repeating... Now with the new Bitcoin light network it Will explode prices
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1 1
Marek .Zgolinski
Marek .Zgolinski Mar 17, 2018 4:59AM ET
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I would say bitcoin is a wothless piece of ****but hello even a ****have some value bitcoin no
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0 0
Mar 17, 2018 4:59AM ET
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You are the ONLY One with zero value to me Marek. Yes i Bought for 220€ on 2015 and how easly exchange it for Higher prices then the currency market prices right now. With 1 or 2 Btc you can have a 20 k banck account on any Fiat currency, a carteira, a house...
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Peter Ser
IceCrusher Mar 17, 2018 4:59AM ET
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 good time for you to sell before you loose it all :D but i know easy money come easy money goes
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0 0
Mar 17, 2018 4:59AM ET
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That Will not happen..sorry!
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0 0
Mar 17, 2018 4:55AM ET
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Heyy people dont u cant see this is just an orquestration ordered to bring down Bitcoin prices. Someone who is playing God, or more powerfull then average man in material resoyrces, who is very stupid, listenning adviser guiddance ONLY. Some one who hold ONLY Fiat dollars and use the Drop of other Fiat to make more dollars. Someone who live with this Simple way of controling Banks, selling orders of costuumers to others Banks or market makers cant accept Bitcoin because they cant do that game on Bitcoin dont work. They are furious and they dont know how to bons Bitcoin só they are just in a strategy since now more intense as Bitcoin prices goes Higher and higher
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2 2
Mar 16, 2018 8:18PM ET
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Stop this from popping up on my feed. annoying as h- ll
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0 0
Denzel Heden
Denzel Heden Mar 16, 2018 7:25PM ET
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There's a trader that put call thinking that bitcoin will soar 50k when it was 19000....now he's crying probably
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1 0
JP P
JP P Mar 16, 2018 7:25PM ET
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he’s probably buying more calls
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Mike Roddy
Mike Roddy Mar 16, 2018 4:18PM ET
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When it moves up, it's going to happen so fast there won't be enough coins available to cover all the short money out there. At this point anyone coming in with a billion dollars could corner the whole market.
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0 0
Mar 16, 2018 4:18PM ET
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Why keep reposting this on the hour. Trying to get back in
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0 0
Mar 16, 2018 4:18PM ET
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Exactly.. if every is selling Bitcoin 8500€ you real cant avoid sell..just do a favor to your self instead sell that price ..out the price Higher Well, we can create new rules to market they need some regulation yes such as: If some buy a very big lot then: Price Will automaticly increase 100x but if low volume price just grow 10x
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Kevin Avila
Kevin Avila Mar 16, 2018 2:54PM ET
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All the "Big Money" have their buy limits/calls @ $3000. Sell Sell Sell
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Mar 16, 2018 2:54PM ET
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Unless you have Bought from 1 to 200€ lolololol and those até who hold more and make price stable..miners
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0 0
Mar 16, 2018 2:54PM ET
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Bitcoin prices is not about trade...os about mining..it cost zero to miners few years ago thats why you buy cheap now for 9k...those mined now Will BE sold later for 10 to 100 more
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