The cryptocurrencies continued to languish, but bulls may have been relieved to see that it didn't make any significant breakout to the downside, as they made new intraday yearly lows yesterday. The BTC contract is down about 71% from its yearly highs in November, as it now bumps against a short-term downward trendline beginning with August highs.
There is little in the way of technical information to give hope to the bulls. The move averages, such as the 21 Day Exponential Moving Average, the 63 EMA, and the 252 EMA, are all sloping downward, suggesting that the general trend is continuing to the downside. The RSI dipped into oversold territory on Wednesday but quickly pushed back out on the back of yesterday's 2.8% rally, while the Parabolic SAR made a bearish crossover in August. The Average Directional Index, also called ADX, which measures trend strength, is rising from a trough, suggesting that the downtrend could be building up some steam.
There is little in the way of support based on price below. A three-year chart of BTC with volume profile shows few areas of consolidation and a large amount of trading activity from here until around 12,000, with the Point of Control area being the heaviest area of trading near 10,470. If things start to go poorly, the price could quickly fall. If price starts to rebound, watch for resistance at the 21 EMA near 20,866.
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