Disclaimer: This article contains technical analysis, which is a methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The content presented in this article is the opinion of the author. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence and consult with a financial advisor before making any investment decisions.
Bitcoin just moved below $9,000 and is bringing the rest of the market down with it. Over the last 40 hours, Ethereum plunged over 6 percent, while XRP plummeted nearly 14 percent. The following technical analysis will evaluate where these three cryptocurrencies could be heading next.
Bitcoin has been consolidating within a descending parallel channel since June. 26. Since then, every time this cryptocurrency reaches the bottom of the channel, it bounces off to the middle or the top. But, when it reaches the top, it falls back to the middle or the bottom.
At the moment, BTC is retracing after hitting the top of the channel. A move down to the middle or the bottom of the channel could now be expected, as it has happened in the last four months.
Adding to the bearishness, the moving average convergence divergence (MACD), which is commonly used to follow the path of a trend and calculate its momentum, appears to be turning bearish. As the 26-day exponential moving average crosses over the 12-day exponential moving average, the probability for a downward movement increases.
As a result, Bitcoin is going down to test the support given by the 50-day moving average, which is sitting around $8,600.