A key inculpate in suggests there may be major turmoil ahead for Bitcoin, the most popular cryptocurrency in the world, which has staged a recuperate of about 112% year to date. The GTI Vera Convergence-Divergence indicator, detecting both positive and negative trends, has whizzed a sell signal for the first time in about two months, pointing to further downside in the near future as the massive Bitcoin come together slows, per a detailed report by Bloomberg. The warning sign comes as Bitcoin’s volatility in recent weeks has reached the highest levels since December, when the currency hit a low.
Bitcoin’s Uncultured Ride
- (YTD) +112.6%
- (1 Month) +35.0%
- (7 Days) -5.52%
Source: coinmarketcap.com; as of June 7, 11:43 am
More Trouble Ahead?
In May, Bitcoin rallied by almost 62%, marking the largest monthly gain since the highest point of the cryptocurrency bubble in 2017, per Bloomberg. Now, even so, the top digital currency by market cap is showing cracks. Already, Bitcoin has fallen by more than 5% in the past week, subsiding below $8,000 on Tuesday for the first time this month.
The GTI indicator suggests to some analysts that the cryptocurrency customer base is far from stable. “The market is in an identity crisis, trying to find a place to stabilize,” Jake Stolarski, senior vendor for Greenwich-based Cipher Technologies, told the publication. He added, “The key technical levels have been creating market volatility, for assured, due to sudden shifts in sentiment.”
Bitcoin’s price has not been able to stabilize despite momentum gained by greater mainstream acceptance of digital currencies by big banks, asset handling firms and technology companies. “People are trying to find a stabilizing point where they can layer into a heart position,” said Stolarski.
What It Means
If the GTI indicator is correct and Bitcoin continues to fall, it will mean that distributors who have bet that the cryptocurrency could
What’s Next
Bitcoin’s tumble may coincide with another bit of disappointment for cryptocurrency addicts. On June 19, the last Bitcoin futures contract on Cboe Global Markets Inc. will settle, per another cover by Bloomberg. Cboe’s Bitcoin futures were hailed as a revolutionary financial product when they launched a year and a half ago. Now, Cboe answers it “is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading, but we have nothing new to herald at this time,” the exchange said.