Notably, the five-month moving average (MA) has rolled over in favor of the bears and looks set to cut the 10-month MA from above – a bearish crossover that hasn’t been seen since June 2014.
If that occurs it could be a worrying signal for the long-term price outlook. Back then, following an identical crossover in June 2014, the cryptocurrency subsequently dropped by 70 percent (from $580 to $166) in the seven months leading up to January 2015.
This time around, the bearish crossover will likely occur at the turn of the month, if bitcoin extends the current decline towards the $7,000 mark, and would open the doors for a deeper sell-off towards the $5,000 mark.
Currently, the five-month MA is seen at $8,916 and the 10-month MA is located at $8,379, according to Bitfinex data. Meanwhile, bitcoin is changing hands at $7,820 – down almost 5 percent in the last 24 hours…