Crunch Time Arrives for Bitcoin as Support Tested at $6,000
Technical analysis shows cryptocurrency flashing buy signals for bitcoin which dropped as low as $5,887 on Tuesday, down almost 60% this year. Chart patterns and measures of momentum are hinting at support just as the latest swoon by the largest cryptocurrency heightens apprehension among speculators and true-believers.Technical indicators may be well suited to projecting buy and sell signals for digital assets, because they trade on limited fundamentals and are susceptible to animal spirits, as the 2017 mania that saw Bitcoin’s market value jump from less than $1,000 to nearly $20,000 proved.Bitcoin repeatedly tested levels near $6,000 this year, only to recover each time. On Tuesday, it dropped as low as $5,887 on Coinbase. Meanwhile, the GTI Global Strength Indicator also proved prescient, issuing a sell-warning on July 30, just as a rally petered out -- it’s now flashing a buy signal.
