BTCD has been down since October 20th when it just hit a high of 47.72%. The decline was initially stopped by a rising support line that had been forming since the beginning of September, from which BTCD rebounded on November 7th (green symbol).
However, the recovery was short-lived and broke the support line on November 19th. The next day the price confirmed the line as resistance (red symbol).
The breakout is supported by both the RSI and the MACD.
The RSI, a momentum indicator, has fallen below 50 (red circle). This is a sign of a downtrend, and the one before it (red circle) resulted in a significant decline.
Similarly, the MACD is also decreasing and is in negative territory. This means that the short-term trend is moving more slowly than the long-term trend.
The next support for BTCD is 39.80%, which was created by the year low.
Does BTCD hit new all-time lows?
Trader @ robw00ds has sketched an inverted BTCD chart showing it is falling to a new all-time low.
The source: Twitter
The weekly chart shows that BTCD will hit a new all-time low.
The September-October rally was preceded by a bullish divergence on the RSI line (blue line). This is a bullish signal and usually precedes a trend reversal. However, this was negated by a hidden bearish divergence (red line) in the same indicator.
Additionally, the RSI is below 50, which is considered a sign of a downtrend. In addition, the MACD is also in negative territory.
Other than the long-term support area described above, there will be no further support until BTCD hits an all-time low.
You can see the BTC price Here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.