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
Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.