Built by Traders, for Traders

Ross Givens

Stock Trader & Educator

Here’s Why BTC Could Drop Another 50%

Since the market bottom in mid-June, the digital currency market has largely been tracking the movement of the stock market.

Both markets were finally able to stabilize and head higher last month.

The S&P 500 rallied as much as 19%, while Bitcoin — the world’s biggest digital currency by market cap — jumped over 43%.

So, does that mean that the Bitcoin bear market is behind us? I don’t think so…

Bears on the Prowl

As you can see in the daily chart of Bitcoin below, the market remains weak.

Daily Chart of BTCUSD with Resistance Range — Source: TradingView

While other digital currencies, such as Ethereum, have rallied over 100% since their lows, Bitcoin is lagging.

After last week’s big drop, Bitcoin is up just 22% from its recent low, which doesn’t show much strength by the bulls.

You can see that the rebound rally didn’t even make it up to the bottom of the prior consolidation range (top dashed line).

Instead, all the bulls could muster up was a push to the May low around $25,300, which was quickly rejected.

Losing the Moving Averages

Now, looking at the daily chart with moving averages (MAs), you can see that Bitcoin made an initial push above its 50-day MA (red line) back in mid-July…

Daily Chart of BTCUSD with Moving Averages — Source: TradingView

The first attempt was rejected, but the bulls made a second attempt a few days later and were able to push through.

It looked like price was going to hold above the 50-day MA and potentially move higher.

However, the bulls rolled over last week as Bitcoin dropped 11.5%.

The drop also did some damage to the weekly chart, as Bitcoin is now back below its 200-week MA…

Weekly Chart of BTCUSD with Moving Averages — Source: TradingView

You can see how price tested the underside of the 50-week MA (red line) back in March and failed to break through.

And as I just mentioned, price is now back below the 200-week MA (blue line) following a weak attempt to hold above it.

Drop Not Done

Folks, I know it may be tempting to try to pick a bottom in the digital currency market.

And I understand that the gains on the bull side are enticing. But these are all signs of a classic bear market.

And in my view, the potential reward still doesn’t outweigh the risk of further downside at this time.

If the recent lows are taken out, there’s not much to support the price until it gets to the $10,000-$12,000 area.

Which means that Bitcoin, which is already down 70% from its all-time high, could stand to fall another 40%-50%.

I’ll be sure to keep you updated as this situation progresses…

Ready for the Big Show?

Before I go, I need to invite you to a LIVE special event happening on TODAY at 12 p.m. ET

My colleague and expert trader Josh Martinez is set to unveil his brand-new professional-grade system that virtually anyone can use with minimal upfront investments…

We’re talking as low as FIFTY BUCKS! You don’t want to miss this!

Click here to snag your seat for the main event happening TODAY at 12 p.m. ET.

I look forward to seeing you there!

Embrace the surge,

Ross Givens
Editor, Stock Surge Daily

Brand New Strategy for Profiting from AI Stocks

There’s a brand-new strategy in 2024 for going after big profits in AI stocks. It has nothing to do with Nvidia, Microsoft, Meta – or any of the big AI stocks the media can’t stop talking about.

It has to do with a fast-moving “backdoor” that has opened in the AI market... A backdoor that could send a very special class of AI stocks rocketing into the stratosphere.

Leave a Reply

Your email address will not be published. Required fields are marked *

GET THE TOP 3 AI STOCKS
FOR THE AI REVOLUTION NOW

High profit potential… strong insider activity… cutting-edge AI technology…

These are the stocks every intelligent trader and investor NEEDS to know about.

Subscribe below to get your FREE report on these stocks – plus a free subscription to Stock Surge Daily, a newsletter that will supercharge your trading potential by handing you market insights you can’t find anywhere else