Bitcoin’s 30% Drop And Ethereum’s 20% Drop: The Charts

- Advertisement -

- Advertisement -

The 6-week selloff of 30% in most markets could create a sense of less enthusiasm for those markets. Even 20% slippage can result in tough questions being asked, what’s next and how did we get here?

With cryptocurrency enthusiasts, however, this is one of those slightly annoying dips (by their words) designed for over-buying. The “hold on for dear life” sentiment maintains interest and a sense of deep concern, perhaps even nervousness, as in most other possessions.

- Advertisement -

The price of bitcoin peaked at around $68,000 in early November. This morning, you can buy one for about $48,000. The price of Ethereum (or Ether) peaked at $4800 in early November and is now hovering around $3800. Meanwhile, stocks like Procter & Gamble
Keep hitting higher heights and some people take notice.

bitcoin daily price chart looks like this:

You can see the negative divergence between the price and momentum indicators (RSI above chart and MACD below chart) that happened from October to November. The selloff occurred in early December with that big red volume bar.

Since then, the price of bitcoin has been trading between that bar’s high and its low, up and down. While the 50-day moving average (blue line) is now trending down, it seems that the 200-day (red line) is trending to provide support.

weekly price chart for bitcoin Here it is:

Here the negative divergence between the price action and momentum indicator is more severe on this chart as it represents more information over a longer period. Bitcoin price is trading above the 50-week moving average. The cryptocurrency is trading well above the 200-week moving average.

Ethereum daily price chart looks like this:

Negative divergence between the price and momentum indicators is also visible on this chart, from the early September high to the early November peak. The 50 day moving average is also trending down. Maybe the 200-day moving average is a downside target for this crypto?

here is weekly ethereum price chart,

The April/March high was crossed in early November, but negative divergences are evident on the RSI and MACD momentum measures above and below the price chart. Note how large the trading range is for just one year: the summer low near 1750 and the November close of 4750. On this weekly view, both the important moving averages continue to move up.

The words of the securities regulator could have a negative impact on these cryptocurrencies. It could also be that the attractiveness of doing something new and exciting in the investment world has started to fade and fade a bit.

Not investment advice. For educational purposes only. Always consult a registered investment advisor before taking any decision.


- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox