Pro says ‘longer term momentum is starting to break in Bitcoin’
Wolfe Research analyst is concerned on recent price action in Bitcoin.
Rob Ginsberg explained why in a research note on Thursday.
The world’s largest cryptocurrency printed a Death Cross this week.
Bitcoin slipped below the key $25,000 support this week which a Wolfe Research analyst finds concerning.
Why is Rob Ginsberg worried about Bitcoin
The world’s largest cryptocurrency tested that level in June as well but ended up rebounding strongly from there.
But the fact that it broke below that strong support this time even if it did so only briefly is worrying because of what it says about the price momentum, as per Rob Ginsberg.
Longer term momentum is starting to break in bitcoin. This is often one of our more reliable warning signs … crypto landscape is growing every more concerning.
Ginsberg is currently bearish on the crypto market at large since Bitcoin is not the only one that challenged crucial levels in recent days.
Bitcoin recently made a Death Cross
Note that Bitcoin has also recently printed a “Death Cross” – its 20-day MA crossed below the 200-day MA that is broadly read as a sign of shifting sentiment and a possible downward trend in technical analysis.
If the $25,000 level does not hold, the next support in Bitcoin is at $20,000.
The Wolfe Research analyst also finds it concerning for the crypto space that its second-in-command – Ether is also currently trading at the key $1,600 level. His research note on Thursday reads:
As the retail investor comes under pressure and liquidity is drained, our concerns will only grow for crypto prices.