{"id":232235,"date":"2018-03-16T07:32:57","date_gmt":"2018-03-16T05:32:57","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=232235"},"modified":"2018-03-16T07:32:57","modified_gmt":"2018-03-16T05:32:57","slug":"bitcoins-death-cross-looms-as-strategist-eyes-2800-level","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/232235\/bitcoins-death-cross-looms-as-strategist-eyes-2800-level\/","title":{"rendered":"Bitcoin’s `death cross’ looms as strategist eyes $2,800 level"},"content":{"rendered":"
\n

The tea leaves don\u2019t bode well for Bitcoin.<\/p>\n

Traders who look for future price direction in chart patterns are finding more indicators suggesting the world\u2019s largest digital currency may have further to fall.<\/p>\n

Bitcoin\u2019s 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\u2019t done since 2015 – signals fresh weakness to come for technical traders who would dub such a move a “death cross.”<\/p>\n

Another moving-average indicator of momentum has already turned bearish.<\/p>\n

While many cryptocurrency investors don\u2019t 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.<\/p>\n

\u201cThere\u2019s been a definitive shift over the past couple of months after the bubble activity at the end of 2017,\u201d said Paul Day, a technical analyst and head of futures and options at Market Securities Dubai Ltd.<\/p>\n

The strategist studied the virtual currency\u2019s 2013 tumble for clues on how it may act this time round. His conclusion? Gear up for a 76% tumble from late February highs, which would take Bitcoin to a paltry $2,800, if the downtrend is repeated.<\/p>\n

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

Regardless, Bitcoin investors had better make peace with volatility.<\/p>\n

When the currency\u2019s 50-day moving average last hovered below the longer measure, during the first 10 months 2015, its performance was lackluster. It fell 5.2% in that period, and then rallied 43% through year-end from the day it broke back above the resistance level.<\/p>\n

It has remained above that line ever since 2015 and racked up three successive annual gains in the process.<\/p>\n

\"\"<\/a><\/p>\n

\n

Read: Bitcoin craze has cooled<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The tea leaves don\u2019t bode well for Bitcoin.<\/p>\n","protected":false},"author":59,"featured_media":225247,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[5537],"class_list":["post-232235","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-bitcoin"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/232235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=232235"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/232235\/revisions"}],"predecessor-version":[{"id":232241,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/232235\/revisions\/232241"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/225247"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=232235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=232235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=232235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}