Here’s the chart…<\/p>\n
![\"\"](\"https:\/\/jc-stable.s3.amazonaws.com\/ee-assets\/channels\/articles\/mm\/201908-mm\/20190828-MM-01.png\")
<\/p>\n
We turned bullish on bitcoin back in February, in part because the various moving averages had crossed into a bullish configuration – with the short-term 9-day and 20-day exponential moving averages (EMAs)<\/a> crossing above the 50-day moving average (MA)<\/a>. This sort of “bullish cross” often occurs just as a chart starts an intermediate-term rally.<\/p>\n And that rally played out quite well – with bitcoin gaining more than 200% in five months.<\/p>\n Now, though, the situation is nearly the exact opposite of what it was in February.<\/p>\n All of the various moving averages have shifted to a bearish configuration. The 9-day and 20-day EMAs have just crossed below the 50-day MA. This sort of “bearish cross” often marks the start of an intermediate-term decline phase.<\/p>\n It doesn’t have to play out that way, of course. If bitcoin can mount a strong rally over the next few days, then that might be enough of a move to get the moving averages to cross back over into a bullish configuration. But, if that is going to happen, then it needs to happen right now.<\/p>\n The longer the short-term exponential moving averages remain below the 50-day moving average, the more likely this bearish pattern stays intact, and the more likely the next big move for bitcoin will be to the downside.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n Where do you think bitcoin is headed, up or down? How have you been trading bitcoin?<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/p>\nReader Mailbag<\/strong><\/h2>\n