Today cryptocurrencies experienced what gravity is!!!
Some have lost more than a quarter of their value. Last week Bitcoin reached almost an all time high of $20,000, as of now, almost a week later, the low of the day is at +/- $10,700...
Many were taken by surprise because of this cryptocurrency "frenzy" buying Bitcoins at top $, even mortgaging their hard assets in order not to miss this so called deal of the century. But cryptocurrencies are not different than other financial investments and gravity always shows up when least expected.
In our last article on 2017-12-19, we warned that our egoldfx algorithm had just sent a trend reversal warning.
Here is a picture of the egoldfx meter and what it is telling us right now...
The yellow line is the algorithm line for Bitcoin. When it bounces on the 70 level, it's a strong signal of a potential trend reversal. On 2017-12-17, the line closed below 70 and the next days also. Thus, on 2017-12-19, the egoldfx meter sent us a downtrend reversal alert as mentioned in our last article. A simple support line (red horizontal line) used as a price confirmation, confirmed the beginning of the downtrend when this support was broken. The following days, the downtrend kept accelerating with a sharp decline today.
What's next?
Well, in order to have a trend reversal alert for a new uptrend and see the end of this decline, we will need to have the Bitcoin yellow line bouncing on the 30 level. That's this simple.
Good trading