Bitcoin price slides below key support to bring risk of further declines
Despite widespread gains over recent months, the Bitcoin price has dropped below a key support level to raise the likeliness of further declines.
The Bitcoin price has tumbled over the beginning of this week, with the day currently looking set to post the second-biggest daily loss in more than six months.
The lull seen throughout the first four months of 2019 has certainly become a thing of the past, with the price of Bitcoin looking to have bottomed out after a nail-biting 2018 for HODLers. Indeed, those long-term holders are finally getting their just rewards, with Bitcoin gaining 100% in just over two months.
Further downside to come?
However, despite the recent gains, we have seen a bearish signal take hold this week, with sharp declines taking us back below the crucial $8003 level. That break not only provides us with a lower low, but also confirms the lower high after we saw a failed attempt to break into a new high last week. This break lower has been accompanied by momentum, with the stochastic oscillator breaking into a new low after failing to respect an ascending trendline. As such, we are looking at the first oversold position for Bitcoin since early April.
Now the $8003 support level has been broken, it looks like any subsequent move could be a retracement before we move lower once again. Only with a break through $8832 would we look at this in a more bullish sense.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Speculate on bitcoin’s price movements without ever taking ownership of the cryptocurrency.
- Use leverage to increase your exposure
- Spreads start at just 40 points
- Go long or short with spread bets and CFDs
Live prices on most popular markets