Bitcoin’s 60% Rally From July Lows May Be Running Out of Steam
Bitcoin’s burst above the $50,000 level didn’t last long, and chart patterns signal its rally since July is at risk of fading. The largest cryptocurrency fell as much as 4.9% Thursday to $46,322, with other tokens including Ether retreating along with the Bloomberg Galaxy Crypto Index. The drop pared Bitcoin’s rally from a July 20 low to about 60%. Bitcoin was trading at $47,342 as of 10:10 a.m. in New York. John Bollinger, inventor of Bollinger bands, in a tweet suggested taking some profits or hedging. Katie Stockton at Fairlead Strategies cited DeMark market-timing indicators as flagging about two weeks of “sideways-to-lower” prices. Read More: Crypto Rally May Be Near Exhaustion, DeMark Indicators Suggest Two charts help sum up the current situation for Bitcoin. Shrinking Bandwidth. Narrowing Bollinger bands -- a popular technical indicator that highlights volatility -- -- indicate the Bitcoin rally is flagging and that the virtual currency faces a zone of resistance from $50,000 t...