As Bitcoin sinks down toward the $30,000 mark, analysts see a “classic bearish technical pattern” that they say could depress the coin further.
Case in point a story by Yashu Gola at Cointelegraph looking at what the writer calls “ongoing medium-term bias conflict.”
An “inverse cup and handle” pattern, he says, could indicate further loss for Bitcoin.
Others give pointers on how to trade the pattern.
“One way to think of the inverted handle is a follow-up to an inverted cup,” writes Ninja Trader. “The inverted handle retraces the initial move, but not to the level of the original trend. Once you see a retracement in the form of an inverted handle of the original inverted cup pattern, setting a stop loss while selling the trend could be a potential trade idea.”
In writing about what this chart activity might mean, Gola points out that the Fed meeting last week is also led to changes in markets where alternate stores of value (like gold) got less attention as the Fed talks about raising interest rates in 2022.
“Bitcoin and other pandemic winners, including gold and Wall Street stock indexes, fell in tandem owing to the Fed’s hawkish tones,” Gola writes. “Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a pool of top foreign currencies, rose to its two-month high, suggesting a renewed appetite for cash among investors.”
There is also the Chinese crackdown on Bitcoin mining, after which the hash rate of the cryptocurrency went down.
As for another big market mover, Elon Musk, who many say caused a Bitcoin crash with his back and forth tweeting earlier this month, Musk has been relatively quiet on BTC, generally just tweeting about SpaceX, Miley Cyrus and video games lately.
Is all of this portending lower prices for Bitcoin?
We’ll see….