{"id":16301,"date":"2020-06-29T07:30:05","date_gmt":"2020-06-29T11:30:05","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=16301"},"modified":"2020-06-29T07:30:05","modified_gmt":"2020-06-29T11:30:05","slug":"bad-news-for-bitcoin","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/bad-news-for-bitcoin\/","title":{"rendered":"Bad News for Bitcoin"},"content":{"rendered":"

The price of Bitcoin is breaking down.<\/p>\n

It’s been a few weeks since we last looked <\/a>at the King of Cryptocurrencies. Back then, we noted how Bitcoin was approaching the apex of a large consolidating triangle pattern. It was headed for a BIG move one way or the other. But, we didn’t know the direction. All we knew was that it would be a big move.<\/p>\n

Now we know the direction. It’s lower.<\/p>\n

Look at this updated chart of the Grayscale Bitcoin Trust (GBTC)…<\/p>\n

\"Chart\"<\/div>\n

Bitcoin broke down last week. The price is now below the support of its 50-day moving average<\/a> (MA – blue line) and its 9-day exponential moving average<\/a> (EMA – red line). So, those former support<\/a> lines are now resistance<\/a> on
\nany rally attempts.<\/p>\n

More importantly, the 9-day EMA is about to cross below the 50-day MA. This sort of “bearish<\/a> cross” has often signaled the start of significant declines in Bitcoin.<\/p>\n

The black circles on the chart mark the three previous bearish crosses over the past year. Each of them led to declines of 30% or more within just a few weeks. It looks like we’re headed for something similar this time around.<\/p>\n

Of course, it’s worth pointing out that we don’t yet have a bearish cross in the moving averages. As of Friday, the 9-day EMA was still above the 50-day MA. So, it’s possible that if GBTC rallies sharply today we can avoid that bearish signal.<\/p>\n

But, it doesn’t seem likely.<\/p>\n

Anything short of a big rally in Bitcoin today is going to create a bearish crossover in the moving averages. And, with the financial markets shifting from a “risk-on” environment to “risk-off<\/a>,” we’re not likely to see a big rally in Bitcoin today.<\/p>\n

So, it looks like the King of Crypto is headed lower for the next few weeks.<\/p>\n

Best regards and good trading,<\/p>\n

\"jeff-signature\"<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

In today’s mailbag, Westley shares his trading experience…<\/p>\n

\n

I appreciate Jeff’s explanation because I was part of the group that lost 100% on the last trade on this stock. But, I followed his guidance, put a limit order out this morning, and was able to get these trades for $.93, and I’ve already made about 15%. I’ll keep a close eye on this one.<\/p>\n

– Westley<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The price of Bitcoin is breaking down…<\/p>\n","protected":false},"author":43,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-16301","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/16301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=16301"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/16301\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=16301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=16301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=16301"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=16301"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=16301"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=16301"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=16301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}