{"id":20032,"date":"2022-08-22T07:30:14","date_gmt":"2022-08-22T11:30:14","guid":{"rendered":""},"modified":"2022-08-22T07:30:14","modified_gmt":"2022-08-22T11:30:14","slug":"is-there-trouble-ahead-for-bitcoin","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/is-there-trouble-ahead-for-bitcoin\/","title":{"rendered":"Is There Trouble Ahead for Bitcoin?"},"content":{"rendered":"

The next few weeks could be tough for crypto currency bulls.<\/p>\n

Bitcoin has had a good run going over the past several weeks. After bottoming near $19,000 per coin in mid-June, the “King of Cryptos” traded above $25,000 early last week.<\/p>\n

That’s a solid 31% rally off the bottom. And that action had the crypto-faithful fans shouting “to the moon” once again…<\/p>\n

But Friday’s 11% drop killed the rally.<\/p>\n

Bitcoin is still trading well above the mid-June bottom. But Friday’s decline caused a lot of damage to the chart.<\/p>\n

Take a look…<\/p>\n

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(Click here to expand image)<\/a><\/p>\n

The blue squares on the chart illustrate each time the short-term, 9- and 20-day exponential moving averages (EMA – red and green lines) crossed above the 50-day moving average (MA – blue line).<\/p>\n

This “bullish cross” often indicates the start of a multi-week rally phase.<\/p>\n

You can see how bitcoin popped higher in the weeks and months following the bullish crosses in 2000 and 2021.<\/p>\n

But the bullish cross earlier this year failed. After a brief pop higher, bitcoin rolled over and fell below all three of its moving averages lines.<\/p>\n

The decline was severe enough that the short-term moving averages dropped back below the 50-day MA – thereby creating a “bearish cross.”<\/p>\n

The price of bitcoin fell 50% in two months following the bearish cross in April.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Up until last Friday, the chart of bitcoin looked quite constructive.<\/p>\n

The King of Cryptos was trading above all three of its moving average lines. And the moving averages had completed a bullish cross just last month. That’s typically a good sign that bitcoin is headed higher.<\/p>\n

But that changed on Friday.<\/p>\n

Now, with bitcoin trading below its various moving averages, the action looks similar to what happened in April.<\/p>\n

If bitcoin can rally immediately, regain what it lost on Friday, and pop back above its MAs then there’s no problem. The chart still shows a bullish cross and the odds will favor a rally over the next several weeks.<\/p>\n

But if bitcoin stays below its various MAs for more than a few days, then that action will pull the short-term 9- and 20-day EMAs below the 50-day MA – creating another bearish cross.<\/p>\n

That would likely lead to much lower prices for bitcoin (and the rest of the cryptocurrencies) over the next several weeks and months.<\/p>\n

Best regards and good trading,<\/p>\n\n\n
\"signature\"<\/td>\n<\/tr>\n<\/table>\n

Jeff Clark<\/p>\n

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

What’s your prediction for bitcoin’s next move?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Friday\u2019s decline caused a lot of damage\u2026<\/p>\n","protected":false},"author":25,"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-20032","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\/20032","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\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=20032"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20032\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20032"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20032"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20032"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20032"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}