Russell Shor | May 16, 2018 05:37
This is the bitcoin weekly chart. It’s EMAs are in bearish formation. The green 5-week EMA is below the orange 13-week EMA, and the orange 13-week EMA is below the black 34-week EMA. If the black 34-week EMA turns down, all three EMAS will have a negative slope and would be indicative of an increasing downwards momentum on a longer-term chart. This may potentially lead bitcoin prices much lower.
Let’s take a look at the daily chart:
Bitcoin’s orange 13-day EMA is looking to cross below its black 34-day EMA (blue ellipse). If this happens the cryptocurrency’s daily EMAs will have set up in a bearish formation. The green 5-day EMA will be below the orange 13-day EMA, and the orange 13 will be below the black 34-day EMA. This is a characteristic of a daily mark-down phase, which may be the catalyst for the black 34-week EMA turning negative, which could be extremely bearish for the cryptocurrency.
Written By: Russell Shor
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