Crypto
Bitcoin flashes doom signals; Expect 'much lower' prices
Bitcoin’s (BTC) price drop has accelerated, with the cryptocurrency slipping below $60,000 at some point in the last 24 hours, and analysts are projecting further losses.
Technical indicators suggest that the maiden cryptocurrency is flashing a series of concerning signals pointing to a significant decline in value.
In a TradingView post on August 4, crypto trading expert Alan Santana noted that Bitcoin is likely heading for much lower levels before it can expect new highs or significant growth.
One of Santana’s most alarming indicators is the bearish divergence on Bitcoin’s weekly Relative Strength Index (RSI). Bitcoin is exhibiting a striking divergence that has been developing over three years.
Specifically, the RSI made a lower high in 2024 than in 2021, despite Bitcoin’s price showing higher highs during the same period. This discrepancy between price action and RSI is a classic bearish signal, suggesting that the underlying momentum driving Bitcoin’s price upward has weakened considerably.
Adding to the bearish outlook, Bitcoin’s weekly RSI is trending downward, with a reading of 50.6. This is significant as it indicates that the long-term RSI is about to turn bearish for the first time since August 2023.
More notably, coming from a major high, this bearish shift in the RSI is the first since November 2021. According to the expert, such a development typically precedes a prolonged downturn, reflecting a loss of bullish momentum and the potential for substantial price declines.
“Doom signal? It is only doom if you are not prepared. On top of the bearish divergence we have Bitcoin’s weekly RSI trending full down with a reading of 50.6. This, and other signals, is telling us that there is room for lower prices; much lower, before we experience new highs and boom growth,” the expert stated.
Bitcoin’s key levels to watch
At the moment, Bitcoin’s price appears to form a descending triangle pattern, a bearish formation that often precedes further declines. Critical support levels to watch include the 0.618 Fibonacci retracement level around $37,795 and the 200-week moving average, which could act as potential downside targets.
Additionally, decreasing volume on upward price movements suggests weakening buying interest, adding to the bearish case.
At the same time, another analyst, Rekt Capital, in an X post on August 3, also noted that the current Bitcoin RSI readings will likely dictate the extent of additional downside.
“Bitcoin is getting really close to this RSI Higher Low trendline. It will dictate the extent of additional downside,” the expert said.
It’s worth noting that Bitcoin also took a hit following troubling signs in the United States economy. Indeed, investors will be looking at strategies implemented by the Federal Reserve to rescue the economy, as this will dictate Bitcoin’s trajectory.
Bitcoin price analysis
At press time, Bitcoin was trading at $60,868, having plunged 1.5% in the last 24 hours. On the weekly timeframe, Bitcoin is down over 10%.
Overall, Bitcoin looks bearish, and the bulls’ ability to sustain the price above the $60,000 support will be key to reducing any further losses.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
How Indiana’s redistricting could impact the legislative session
Statehouse reporter Kayla Dwyer breaks down tensions between Indiana and the Trump administration regarding the state’s redistricting efforts.
Indiana lawmakers are hoping to make the state a cryptocurrency leader by allowing the state to invest in digital currencies like Bitcoin for state savings and retirement plans while prohibiting local communities from restricting crypto companies.
The legislation, House Bill 1042, comes as excitement grows over the once obscure digital assets that have made millionaires and wiped-out fortunes. Its supporters now include some of the country’s most powerful people, including President Donald Trump and initially hesitant financial institutions, while the first major piece of crypto legislation passed Congress earlier this year.
Now, Indiana is looking for a slice of the windfall. The topic was one of just a few to get an earlier-than-usual hearing as lawmakers consider redistricting, signaling it’s a major topic of interest among Republicans.
“Crypto policy will become a mainstay of this committee’s work for probably years to come,” said bill author Kyle Pierce, R-Anderson, at a House Financial Institutions Committee meeting Dec. 4.
A volatile investment?
Though the bill would allow public investment funds to delve into the world of digital currency, it stops short of allowing direct crypto investments.
Instead, the bill applies to cryptocurrency exchange traded funds, or EFTs — a safer, federally regulated fund that tracks crypto prices, either by holding the digital assets or a contract that speculates on prices in the future.
The state investment programs required to provide such options include the 529 education savings plan and certain retirement funds for teachers, public employees and lawmakers. It also allows other state investment funds to place their assets in crypto EFTs.
While less volatile than a direct investment, it’s not entirely without risk. Because there is less oversight in the underlying crypto market, the Securities and Exchange Commission has warned it’s difficult to prevent fraud and ensure fairness, even for EFT investors.
That was a tentative concern for Tony Green, deputy executive director of the Indiana Public Retirement System, at the House Financial Institutions Committee hearing Dec. 4.
Though neutral on the bill, Green said IPRS would want to ensure there were proper disclaimers about volatility. And while the agency wants to offer choices to their members, he said, those surveyed were generally uninterested.
No anti-crypto regulations
Another aspect of the bill limits how local governments and state agencies can regulate crypto, though Pierce said it’s only intended to ensure laws don’t unfairly target crypto.
Specifically, it would prohibit regulation of an individual or a business’ ability to accept digital currency as payment, including by taxing use of the payment method. It also stops local governments from denying crypto mining facilities in areas zoned for industrial use or applying noise restrictions specific to crypto.
There was some worry about a clause in the bill that bans a public agency from prohibiting a person’s ability to “use or accept digital assets as a method of payment for legal goods and services.”
The bill was welcomed by the founder of the local crypto mining business Megawatt.
Ilya Rekhter, who operates mining facilities in rural areas across the state, said the legislation would help prevent a sudden change in zoning laws after a business has already invested money in a facility, Rekhter said.
“We’re not asking for any special treatment,” he said, “just the same treatment.”
The committee won’t hold a vote on the bill until January.
Contact breaking politics reporter Marissa Meador at mmeador@gannett.com or follow her on X @marissa_meador.
European Christmas markets fortify security measures as terror threats force major operational changes
‘Another D-Day’: Biden once urged ‘international strike force’ on narco-terrorists as Dems now blast Trump
Fox News Health Newsletter: ‘Beer bellies’ linked to serious heart damage
NFL cites player safety in plan to bring every stadium’s playing surface up to enhanced standards
When AI cheats: The hidden dangers of reward hacking
Florida High School Football Rankings: Top 25 teams – Oct. 21
Cleary's 21 help Le Moyne down Central Connecticut State 69-64 in OT
How old is Bo Nix? What to know about Oregon quarterback ahead of 2024 NFL Draft
99th annual Pony Swim held in Virginia
Video: ‘It Didn’t Have to Happen This Way:’ U.Va. Faculty Call for Review of Police Response to Protests
‘Another D-Day’: Biden once urged ‘international strike force’ on narco-terrorists as Dems now blast Trump
EU members seek fewer ‘Solidarity Pool’ relocations of asylum seekers
West Virginians question National Guard deployments after attack on 2 of their own
ICE arrests Azerbaijan national with multiple criminal convictions including animal cruelty, arson
US Supreme Court to consider Trump’s bid to end birthright citizenship
-
Politics4 days agoTrump rips Somali community as federal agents reportedly eye Minnesota enforcement sweep
-
Technology1 week agoNew scam sends fake Microsoft 365 login pages
-
News4 days agoTrump threatens strikes on any country he claims makes drugs for US
-
Ohio2 days agoWho do the Ohio State Buckeyes hire as the next offensive coordinator?
-
World4 days agoHonduras election council member accuses colleague of ‘intimidation’
-
Politics1 week agoRep. Swalwell’s suit alleges abuse of power, adds to scrutiny of Trump official’s mortgage probes
-
News1 week ago2 National Guard members wounded in ‘targeted’ attack in D.C., authorities say
-
Ohio1 week agoSnow set to surge across Northeast Ohio, threatening Thanksgiving travel