With rumors from China's regulators that it may seek to shut down domestic bitcoin exchanges, cryptocurrency investors are quite nervous and uncertain.
We all know that the worst condition for a market is uncertainty. Bad news is preferred than not knowing what to to.
Let see technically with our eGOLDfx algorithm what's going on:
- eGOLDfx algorithm reached the Stong area above 70 and is now bouncing down to weaker levels.
- Price broke the nearest support ( orange horizontal line )
- We need to wait until the end of this week to see if the Uptrend line is broken with a weekly close below it.
If next week the uptrend line is broken and the eGOLDfx algorithm is still showing signs of a reversal, then a new medium-term downtrend might be considered.
- A double top is forming and a break below 3 (orange horizontal line) will activate a major downtrend.
- eGOLDfx algorithm has peaked and is now bouncing down
- A break below the dotted horizontal line will increase the probability of a downtrend all the way to 3. And if 3. is also broken the downtrend will have plenty of room to move lower.
If the eGOLDfx algorithm doesn't turn north in order to show that the downtrend was a fake and price doesn't reverse, then we might be ahead of great uncertainty with the Ethereum crypto in the weeks to come.
Until then,
Good investing
eGOLDfx team