BTCUSD continues to bleed since last Sunday and has now entered the danger zone. Should the cryptocyrrency fail to attract buyers in the short term, it may show an even more significant bearish wave. Bitcoin is probing fresh 11-day lows on Thursday, getting closer to the crucial $7,000 mark.
In the charts, there is a distinct bearish signal. The 50-day moving average crosses below the 200-day moving average which is a death cross, traditionally warning about a sustainable downtrend. However, we should remember that we can’t fully apply similar traditional models to this market, so in this case, it could be just a signal for further sales for the time being, but not in the long term.
Regulatory concerns are still there, and the recent crypto ads ban by such giants as Google, Facebook and Twitter don’t add optimism at all. The additional downside pressure came from China, where the PBOC said that they will launch crackdown on cryptocurrencies this year. Obviously, the industry is yet to overcome the regulatory challenges, and bearish risks from this front will continue to hurt digital assets down the road. But if positive long-term forecasts are anything to go by, bitcoin’s bearish periods are still good buying opportunities for patient investors.
By Helen Rush
Senior Analyst at Capital Markets