As euphoria over cryptocurrencies deflates in the wake of Bitcoin’s biggest monthly surge in almost two years, technical indicators are showing there could be more pain ahead.
The GTI Vera Convergence-Divergence indicator, which detects positive and negative trends, flashed a sell signal for the first time since April, suggesting there could be further downside as Bitcoin halts its recent monster rally.
"The market is in an identity crisis, trying to find a place to stabilize."
said Jake Stolarski, Senior trader at Greenwich, Connecticut-based Cipher Technologies.
"The key technical levels have been creating market volatility, for sure, due to sudden shifts in sentiment."
Bitcoin fell as much as 12 per cent to $7,544.42 in New York trading. The slump follows the coin’s 62 per cent surge in May, the biggest monthly gain since the height of the crypto bubble in August 2017.
What do you think about this?
Bitcoin Indicator Flashes a Sell Signal as Slump Accelerates May might be the biggest month that has held the highest increase in value of Bitcoin after the bear recovery of this year, I strongly believe that it will not be the last increase and that will not be the month to celebrate the highest increase for now.
There are still more of investment that will come in this remaining part of the year with more developments, more industries and more investors, I do not see any form of FUD news that may create massive panic sell, the sell we see now is not necessary but does happen because of people who has profit target, not everyone you see has ATH as target, while that is target of many of us who are still in the market, the correction will reverse and we will see new uptrend soon.