Bitcoin’s Bearish Cross Indicates More Trouble Ahead

Bitcoin is in a precarious position right now. [Jeff Clark's Market Minute]( Bitcoin’s Bearish Cross Indicates More Trouble Ahead By Jeff Clark, editor, Market Minute Just [one month ago]( I asked, “Is There Trouble Ahead for Bitcoin?” My concern was that the “King of Cryptocurrencies” had fallen below all the various moving average lines on its chart. And the 9- and 20-day exponential moving averages (EMA) were set to cross below the 50-day moving average (MA) – thereby completing a “bearish cross.” A bearish cross often leads to even lower prices… Recommended Link [“Want to know how I make money?” – Jeff Clark, Self-made Millionaire]( [image]( You’ve heard it all before... Go to school. Get a decent job. Work hard for years. Buy and hold stocks. That’s the HARD way to get rich. But this “Secret” can help you make an extra $1,400... $5,420... $7,470... in a matter of weeks. And you can do it from the comfort of your own home… [Show me the way!]( -- And it has. Bitcoin was trading near $21,117 when we published that essay. Today, it’s trading near $18,700. That’s more than an 11% drop in just one month. Today, I’ll ask a similar question… Is there more trouble ahead for bitcoin? To find out, let’s look at this chart… [(Click here to expand image)]( Bitcoin is currently testing the support of the $18,700 level (dashed line). It has tested this support level five times over the past three months. The price of bitcoin bounced on the previous four tests. It’ll be interesting to see if it can bounce right now on the fifth test. You see, each time a support level is tested, the support weakens a bit. And the more tests there are within a relatively short time frame, the more likely that support will eventually fail. So, bitcoin is in a precarious position right now. Yes, support could hold again and bitcoin could bounce from here… If so, the “King of Cryptos” could be trading back up to its September high near $22,000 in the days ahead. An even stronger bounce could push bitcoin back up towards its August high near $24,500 over a couple of weeks. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. That seems like some fairly good upside potential. But if support breaks, the downside potential is even larger. Take a look at the long-term chart… [(Click here to expand image)]( The current support level at $18,700 lines up with a former resistance level from late 2020 (top dashed line). If this level fails, then the next support comes in around $12,000 – which is the former resistance level from August of 2020 (bottom dashed line). [The One Ticker Retirement Plan: Over the Shoulder Demo Now Available]( It could go either way, of course. But given last month’s bearish cross of the moving average lines – and given the recent multiple tests of support – it looks to me like the bitcoin bears have the edge in this scenario. In other words, there’s most likely some more trouble ahead for bitcoin. Best regards and good trading, [signature] Jeff Clark Reader Mailbag In today’s mailbag, a reader shares their thoughts on [Jeff Clark’s essay]( about the Treasury Bond market… The bond selling isn’t going to end soon as the Federal Reserve is slowly liquidating its bond portfolio that it bought during the pandemic. This will cause interest rates to stealthily go up – and bond prices and TLT to fall for quite a while. – Gene S. Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com. In Case You Missed It… [The world as we know it is ending]( The era of prosperity that we’ve enjoyed since the end of WW2 has begun to end. 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