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Warning Sign Suggests Bitcoin (BTC) Will Sink Lower, Pushing Ethereum, XRP and Altcoins Along With It

September 26, 2019

Bloomberg says a key indicator suggests Bitcoin’s pullback is likely to continue.

The GTI global strength indicator, which is used to identify the strength of an asset’s price by comparing the movement of the daily close, shows BTC is not yet in oversold territory.

Analyst Josh Rager says if BTC can’t break through resistance at about $8,650, it could soon test support at around $8,100.

“In my opinion, the best and wisest move is to continue to scale-in at major support areas. While many are now targeting $6,100 to $6,500 as the ‘bottom’ – I can certainly see this level be front-run like every other major target this year. Another potential opportunity to get <$8,000 BTC…

If Bitcoin fails to break above the current level, we’ll get another retest of the support below – which has bounced once and could hold.

But if this isn’t a bear trap I do see price heading down to low $7,000’s. Lots of buyers are waiting between $6,180 and $6,500.”

Rager says that if Bitcoin does indeed slip into the $7,000s, he believes the altcoin market will likely suffer another 20% drop.

“Altcoins have seen more selling pressure after the breakdown of Bitcoin.

People realize this isn’t likely to be a quick ‘v’ reversal. I expect some alts to see new lows for this year against Bitcoin. [Altcoins] can lose 20%+ more as Bitcoin likely hits $7,000’s again (weekly close will tell).”

At time of publishing, Bitcoin is back in the red. The leading cryptocurrency is down 2.11% at $8,357, according to COIN360.

Most altcoins are also flashing red, with the exception of XRP and Stellar (XLM),  up 1.48% and 7.78%, respectively.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.