Cryptocurrencies

Bitcoin’s Recent Rally May Have Run Its Course, Technicals Show

  • DVAN Buying and Selling Pressure gauge falls below trend line
  • Crypto fans remain bullish given Bitcoin’s 35% gain this year
Bitcoin Is Extremely Volatile, BC Group's Chapman Says
Lock
This article is for subscribers only.

Bitcoin fans have been heartened by its recent rally, but a technical indicator points to a potential slump ahead.

Based on the DVAN Buying and Selling Pressure Indicator, which depicts bull/bear trends, Bitcoin fell below the trend line for the first time since late May, suggesting the coin may be forming a new selling pattern. The world’s largest digital token sees resistance at $10,000 and any drop will likely first test $9,500, which would imply a 2% retreat from current levels.