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Cryptocurrency: Bitcoin Charts Show Conflicting Signals; Ethereum Falls

By Kurt Osterberg · On July 14, 2017

After a tough week in the cryptocurrency space with all major digital currencies registering a negative performance, market heavyweight BTC has stabilized and may be looking to re-coup some of its losses.

A look at the daily chart shows a potential bullish pennant formation, although the lower-high/higher-low pattern normally seen is not quite so distinct.

Chart: Bitcoin Daily Timeframe (February – July 14, 2017)

Chart by IG

The four-hour chart however signals a potential for BTC to move even lower as the recent downturn has seen the currency move below its 20-, 50- and 100-day exponential moving averages (ema). The break lower was confirmed on July 9 with a bearish crossover with the 20- and 50-day ema below the 100-day ema. The momentum indicator also has moved from positive to neutral.

Chart: Bitcoin Four-Hour Timeframe (June 26 – July 14, 2017)

The second-largest digital currency Ethereum (ETH) has also suffered heavy losses this week, falling by around 20%. With most explanations of this week’s fall based on personal opinion rather than market specifics or technical releases, ETC may be in for a continued rough ride in the weeks ahead.

Chart: Ethereum Five Day Chart (July 10-14, 2017)