Bitcoin Flashes Sell Signal After Struggling to Break $9,000 - BLOOMBERG

JANUARY 21, 2020



  • Technical indicator warning is first since peak in June 2019

  • Cryptocurrency trades near highest level since November

Although Bitcoin kicked off the year with renewed enthusiasm, a technical indicator is indicating potential trouble ahead.

The largest cryptocurrency’s Global Strength Indicator, a measure of upward and downward movements of successive closing prices, is posting a sell signal, the first since the digital asset’s peak last year in June.

GTI indicator shows Bitcoin receiving a new sell signal

In recent weeks, Bitcoin has failed to successfully overtake the $9,000 mark for a sustainable period, with a dip at the beginning of January pushing the price below $7,000. But the downward trend reversed last week, with Bitcoin briefly breaching $9,000 on Jan. 17, the highest since November.

The sell signal Tuesday is reminiscent of one in June that saw the coin to drop to nearly $7,400, a trough that lasted to mid-December.

The price swings come in the wake of a volatile 2019, in which investor optimism over the announcement of Facebook Inc.’s Libra crypto project was followed by skepticism and upped regulatory scrutiny.

“On a technical basis, it’s getting overbought and more importantly for political reasons I think there are just too may political headwinds for a cryptocurrency to get the kind of traction the bulls think it will,” said Matt Maley, an equity strategist in New York at Miller Tabak & Co.

— With assistance by Kenneth Sexton


This website uses cookies We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you've provided to them or that they've collected from your use of their services
Real Time Analytics