Bitcoin's burst above the $50,000 (roughly Rs. 37.1 lakhs) level didn't last long and chart patterns signal its rally since July is at risk of fading.
The largest cryptocurrency fell as much as 4.4 percent Thursday to $46,588 (roughly Rs. 34.6 lakhs), with other tokens including Ether retreating along with the Bloomberg Galaxy Crypto Index. The drop pared Bitcoin's rally since a July low to some 60 percent. Ether price in India stood at Rs. 2.43 lakhs and Bitcoin price in India stood at Rs. 36.86 lakhs as of 5pm IST on August 26.
John Bollinger, inventor of Bollinger bands, in a tweet suggested taking some profits or hedging. Katie Stockton at Fairlead Strategies cited DeMark market-timing indicators as flagging about two weeks of “sideways-to-lower” prices.
A so-called point and figure analysis - which spotlights the direction of prices without a time dimension -- signals Bitcoin faces a challenge to scale levels around $50,940 (roughly Rs. 37.7 lakhs) on a closing basis. A failure to breach the 45-degree trend-line of the point and figure chart could strengthen the bearish case.
© 2021 Bloomberg LP
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