Bitcoin: Technicals remain bearish as Chinese central bank cracks down on the cryptocurrency
CoT bias further majority short as Bitcoin’s price slides to break the $7,000 level, retail bias extreme long and rising.
Bitcoin Technical analysis, overview, strategies, and levels
Another tough consecutive week for Bitcoin’s price, and the general crypto market as well, with the Chinese central bank’s formal announcement of a plan to crack down on the crypto business certainly not aiding the decentralized cryptocurrency, even if the country prepares to embrace the underlying blockchain technology and likely a digital currency of their own. Price crossed below both its 50-week and 100-week MA's, finishing just above the 50 but needing little to cross back below it. On the daily it’s a clear bear trend technical overview and anticipating from a speculative standpoint an ongoing but retraceable declines back down as the speculative surge to near $14,000 levels unwinds. But a lack of momentum on the weekly means contrarian sell breakout strategies may be ideal for limited profit-taking.
IG client and CoT sentiment for Bitcoin
There’s been little change in retail sentiment which stands at an extreme long 84%, while CoT (Commitment of Traders) bias has risen to a majority short 61%.
Bitcoin Chart with institutional sentiment
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