Get the best parts of DailyFX.com in the new DailyFX App Price behavior analysis, short to intermediate-term trade set-ups. Last week, we looked at Bitcoin and Litecoin, noting broken support levels likely leading to more breaks ahead. The group as a whole is quite weak, as my colleague Nick Cawley also pointed earlier out with the Ripple chart.
The short-term picture for cryptocurrencies remains firmly bearish within the context of a much larger unwind likely to continue for the foreseeable future. There will be rallies along the way, as we’ve seen, but the general outlook isn’t good for this once manic-market waking up to reality.
See how positioning changes on the IG Client Sentiment page can help identify price direction in cryptocurrencies and other major markets. Bitcoin not long ago broke a key trend-line running back to February and is now flirting with breaking the low created back then.
The 5920 level is considered quite important given it ended the initial plunge off the record high – it was the decline which marked the beginning of the end. A drop below 5920 could spark acceleration in selling, but as we’ve seen volatility is slowly dying along with the market’s zeal for cryptocurrencies. Read more from dailyfx.com…
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