Bitcoin skids to 2-week low but technical analyst says slump not a ‘decisive breakdown’ until crypto does this

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Bitcoin was under renewed selling pressure on Tuesday, bringing the world’s number 1 cryptocurrency to lows that have not been seen since the end of May. However, at least one technical analyst says that the collapse in Bitcoin prices will not represent a significant dip in its uptrend until the asset sees weaker closing prices today and tomorrow.

“The short-term momentum has deteriorated, but not to the extent that we have a sell signal (in the daily MACD),” Katie Stockton, technical analyst and founder of Fairlead Strategies, told MarketWatch, referring to the divergence of the moving Average convergence, a measure of an asset’s dynamism.

“A conclusion about the 20 days [Moving average] would be a short-term bullish development, “said the analyst.

As of the last review, Bitcoin BTCUSD, -8.18%, was trading at $ 32,850.88 on CoinDesk, down over 10%. The cryptocurrency has risen by over 13% this year, but has been steadily losing ground since the beginning of the year. According to Dow Jones Market Data, prices were roughly at their lowest level since May 23. Bitcoin is down nearly 50% from its mid-April high of $ 64,829.14.

CoinDesk analyst and author Damanick Dantes said the resistance for Bitcoin is around $ 40,000, with support at around $ 30,000.

Bitcoin has been under pressure for weeks, but its decline has exacerbated in recent measures after US authorities said they were getting back millions of euros in Bitcoin paid to the hackers who launched a cyber attack on the Colonial Pipeline last month had. a large fuel pipeline on the east coast.

The general decline in the price of Bitcoin has weighed on the broader crypto complex.

Dogecoin DOGEUSD, -9.44%,
The popular virtual meme currency, developed in 2013, lost over 12% and changed hands at 32.5 cents. Backed mostly by individual traders on sites like Reddit and Discord, the cryptocurrency is down 56% from its high in early May. Of course, Dogecoin has risen almost 7,000% over the year to date.

# 2 of the World’s Most Valued Cryptocurrencies, Ether ETHUSD, -10.17%,
ran on the Ethereum blockchain, trading 12% lower, at $ 2,489.89. Ether is far from its mid-May high of $ 4,382.73. Ether is up over 200% so far in 2021, despite its slump.

For comparison, the Dow Jones Industrial Average DJIA, -0.21%, and the S&P 500 Index SPX, -0.04%, are both close to 13% in 2021, while the Nasdaq Composite COMP, +0.39 %, up 8.5% over the year to date, FactSet data shows.

Still, at $ 1.495 trillion, the total market value of crypto is about 40% below a high in mid-May, according to CoinMarketCap.com.

CoinMarketCap.com