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Sunday, October 1, 2023

Bitcoin: In terms of charts, dark clouds are rising – is the bear market now breaking?

After a few quieter days, the cryptocurrency market has come under considerable pressure again. Many crypto values ​​are losing double-digit percentage values ​​in today’s trading. The industry leader Bitcoin has slumped by around eight percent to just under 33,000 US dollars. Ether, the second most important digital currency after Bitcoin, had to give way by a good nine percent to around $ 2,500.

FBI secures extorted Bitcoin

Some market participants consider the recent discovery of Bitcoin ransom by US investigators as the reason for the charge. The digital money comes from a hacking attack on Colonial, the operator of a large US oil pipeline. The FBI claims to have secured most of the money that a group of hackers extorted from the pipeline operator.

63.7 Bitcoin with a current value of 2.3 million dollars had been recovered, said State Secretary in the Justice Ministry Lisa Monaco on Monday. The cyber attack on the operator Colonial Pipeline severely restricted the fuel supply on the US east coast. The hacker group DarkSide was held responsible for the attack. In mid-May, she announced that part of the ransom had been lost. Colonial said it had paid just under five million dollars.

Apparently, the success of the investigation has shaken the prevailing impression among Bitcoin proponents that digital currencies are immune to government intervention due to the high anonymity of transactions.

Michael Saylor accesses it again

Crypto pioneer and MicroStrategy CEO Michael Saylor can’t help but take it with his company to add more Bitcoin to the portfolio. This time the sum should be $ 400 million, as the company announced.

So far, the company has used convertible bonds to raise capital. This time around, the Notes are to be guaranteed on a senior secured basis by MicroStrategy Services Corp, a subsidiary of MicroStrategy.

However, in view of the current extreme volatility of the crypto markets, the company issues a warning and considers an impairment of its own capital for the second capital of at least 284.5 million US dollars to be likely.

The company announced that it has formed a new subsidiary, MacroStrategy LLC, which will hold its current stash of 92,079 Bitcoin.

Bitcoin charted

With the recent losses, Bitcoin and Ethereum have moved further away from their recently reached record highs. Bitcoin had hit a record of almost $ 65,000 in April, while Ethereum was worth well over $ 4,000 in May.

Bitcoin has already suffered huge setbacks in the past few weeks with the loss of the 21-week and 200-day trend lines. Both have functioned as important indicators of the health of the Bitcoin bull market in the past. Now a so-called “death cross” is emerging on the chart image, ie the cutting of the 50-day trend line down through the 200-day trend line, which was always the indicator of a bear market for Bitcoin in previous phases

As you can see on the chart, the 50- (blue) and 200-day trend lines (red) are converging and threaten to form a “death cross”.
The fact that the price has broken out of the symmetrical triangle formed by the chart, which is a confirmation of the trend – in this case further down, speaks for further bearish momentum.


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The negative market sentiment and the setbacks in charting do not bode well in the short to medium term. A quick return above the important trend lines seems out of the question for the time being. Many indicators suggest that the Bitcoin price will move into a bearish trend for the next few weeks or months – further lows cannot be ruled out.

However, the current problems do not mean much for long-term development. At a fundamental level, the situation remains promising, as the technical adaptation and further development of the crypto sector continues unabated and the acceptance of Bitcoin is growing, as the decision of the South American state El Salvador recently showed to accept Bitcoin as a means of payment.

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