Bitcoin’s recent decline in price may continue according to technical analysis by Valkyrie Investments. The Japanese developed Ichimoku Cloud employs five lines to measure momentum and the strength of a trend. The chart currently indicates a bearish signal due to the flip of the momentum indicator. The cloud, which is formed by the two lines referred to as Leading Span A and B, determines the broader trend. Analysts at Valkyrie suggest a price close within the cloud could prompt a loss of cloud support and bring prices as low as $24,000. Bitcoin recently hit a low of $26,200 due to speculation that the US Federal Reserve may scale back its asset purchases – a hypothesis which was supported by improved economic figures due to the ongoing recovery from the pandemic. Meanwhile, the dollar index has recovered, and the US debt ceiling remains an issue of concern for investors. As the cryptocurrency world and blockchain technology continue to evolve, investors will rely on such technical analysis tools to assess potential price movements. However, it’s worth not becoming overly reliant on them, as markets are always subject to change as a result of different factors.
Bitcoin’s price has fallen back into the cloud
As bitcoin’s daily chart shows a bearish crossover on Ichimoku cloud, investors will be looking out for any potential price changes. Analysing these trends and taking action in response can lead to great rewards, but investors should always exercise great caution. CoinDesk is a news platform that offers the latest news in cryptocurrency, digital assets, and the future of money. It is a media outlet that abides by a strict set of editorial policies and is constantly monitoring the market. CoinDesk also organizes Consensus 2024, considered the most influential event in the cryptocurrency world that gathers experts from all sides of the sector to discuss current developments and future projections.
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The material in this article is written on the basis of another article.