Bitcoin Plunges As Technical Analysis Pointed To Overstretched Conditions
Bitcoin plunges this morning. It dropped almost 20% over Sunday and Monday and is now trading around $33,000. That’s the biggest two-day slide since May 2020 after hitting a record high of almost $42,000 on Jan. 8.
#XBT #BTC | Two-Day #Bitcoin Plunge Shakes Faith in #Cryptocurrency Boom – Bloomberg
*Link: https://t.co/nq1iYnClAS pic.twitter.com/KDSRfhfoEB— Christophe Barraud (@C_Barraud) January 11, 2021
On the technical front, Jean-Charles Gand, Chief Technical Analyst at Market Securities, noted this morning, that price remains overstretched. “The chart below shows the price below its ascending 10-day moving average. It is worth noting the RSI has triggered a sell signal. The lack of bullish reaction today would raise the downside risk.”
#XBTUSD #Bitcoin | Bitcoin drops 13%+ as I’m typing. The crypto is overstretched.The chart below shows the price below its ascending 10-day moving average. It is worth noting the RSI has triggered a sell signal. The lack of bullish reaction today would raise the downside risk. pic.twitter.com/NPc7tAUKP1
— Jean-Charles GAND (@jeancharlesgand) January 11, 2021
He added “The price has reached 6.2 standard deviations above its ascending 200-week moving average, which is still below the level of week of Dec.10, 2017. A mean reversion move is in progress.”
#Bitcoin | Update – The price has reached 6.2 standard deviations above its ascending 200-week moving average, which is still below the level of week of Dec.10, 2017. A mean reversion move is in progress. pic.twitter.com/RpVMzkqcVm
— Jean-Charles GAND (@jeancharlesgand) January 11, 2021