Markets

Bitcoin dips after hitting technical resistance

Investing.com -

Investing.com - Bitcoin fell on Wednesday, on the back of concerns that the cryptocurrency may be set for a period of selling pressure as it entered technical levels that could offer strong resistance to upside momentum.

BTC/USD traded at $2,528.9, down $213.1, or about 7.77% by 13:29 EDT.

Goldman Sachs) chief technician Sheba Jafari recently warned clients that the bitcoin market may be heading for bearish territory, adding that they should consider the possibility of reinitiating positions after a pull back to between $2,440 and $1,915.

"It's on track to forming a bearish key day reversal if today's (June 12) close settles below 2,749. It will also form a key week version if Friday's close is below 2,475. Both daily/weekly oscillators are diverging negatively. All of this to say that the balance of signals is looking broadly heavy."

The move lower in bitcoin comes a few days after the digital currency hit a record high of $3,000 on Monday.

Sharp rallies and steep troughs are not uncommon moves for bitcoin, according to Raoul Pal - author and publisher of The Global Macro Investor, an elite macroeconomic and investment research service - who said " [Bitcoin] goes through this periodically… it rises several hundred percent, and then collapses."

The sharp move lower in bitcoin was mirrored by a similar move in Ethereum, which dipped by 7.5% to $355.79.

Investors, however, remained optimistic that Ethereum would be the alternative cryptocurrency that usurps bitcoin as the largest and best capitalized blockchain - a phenomenon referred to as "the flippening".

At current prices, Ethereum's market cap of nearly $34 billion is not far behind bitcoin's roughly $42 billion.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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