Down 14 Percent: Bitcoin Charts Bearish Amid Asia Concerns

Amid negative news flow, Bitcoin is taking a hit today and touching 3.5 week lows at the time of writing.

AccessTimeIconJan 16, 2018 at 11:30 a.m. UTC
Updated Aug 18, 2021 at 7:56 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Bitcoin is taking a hit today, touching 3.5 week lows at the time of writing.

Data source OnChainFX indicates that bitcoin (BTC) has depreciated by 14 percent in the last 24 hours. At press time, prices were was at $11,966 levels, according to CoinDesk's Bitcoin Price Index.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Notably, the world's largest cryptocurrency by market capitalization is down 40 percent from its all-time high of $20,000 set just a month ago.

    The losses in bitcoin are largely in line with those seen across the cryptocurrency space. As of writing, Ripple (XRP), stellar lumens (STR) and cardano (ADA) are down at least 25 percent on the day each. Ethereum's ether (ETH) token has shed 18 percent in value in the last 24 hours.

    So what's troubling the cryptocurrency markets?

    Firstly, comments on social media indicate there is unease in the investor community over talk of a cryptocurrency trading ban in South Korea and further possible crackdowns on trading and mining in China.

    And secondly, BTC futures contracts are trading at a discount to bitcoin's global average calculated by CoinMarketCap. The January expiry futures contract on the CBOE is trading at $11,510 and CME's is changing hands at $11,530. Meanwhile, BTC spot is trading at $11,816. The discount (futures price lower than spot price) indicates that the market participants are bearish on the underlying asset (BTC).

    The technical chart analysis indicates scope for a drop to below $10,000 levels if the bulls can't muster a response today.

    Bitcoin chart

    download-1-35

    The above chart (prices as per Coinbase) shows:

    • The rising trendline (blue line) has been breached.
    • A downside break of the triangle pattern, indicating the sell-off from the record high of $19,891.99 (Dec. 17 high) has resumed.
    • The relative strength index (RSI) has turned bearish (below 50.00), indicating scope for further losses.
    • The 50-day moving average (MA) has shed bullish bias (flattened).
    • The 5-day and 10-day MAs carry a strong bearish bias (downward sloping).

    View

    • BTC looks set to close (as per UTC) below $13,000 and extend its decline to $8,350 (support of rising trendline).
    • A minor recovery cannot be ruled out if bitcoin defends $11,004 (61.8 percent Fibonacci retracement of the rally from the November low to the December high) over the next few hours.
    • Significant gains above $14,000 (daily highs) look unlikely, courtesy of the downward sloping 10-day and 5-day MAs.

    image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.