Bitcoin prices hit low since mid-October as technical indicators point to weakness

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Technical analysts intervened after bitcoin fell to its lowest since mid-October. (Photo … [+] Illustration by Chesnot / Getty Images)

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Bitcoin prices fell to their lowest for more than a month today, experiencing the decline at a time when technical indicators show that digital currency could be heading for further losses.

The world’s largest cryptocurrency fell to as low as $ 56,668.50 today, according to data from CoinDesk.

By this point, it had lost almost 18% of its value after hitting an all-time high of nearly $ 69,000 earlier this month. In addition, it had been trading at least since October 13.

As a result of this downward movement, the digital asset has recovered, being worth close to $ 58,000 at the time of writing.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bitcoin prices have been showing some weakness lately, and several market watchers have shed some light on the situation.

“Bitcoin traded sideways in the 55,000 to 65,000 price brackets, similar to its performance from February through May,” noted John Iadeluca, founder and CEO of multi-strategy fund Banz Capital.

“Personally, I don’t think this is very positive for the price of Bitcoin.”

He said if the digital currency falls below certain support levels, it could lead to significant losses.

“$ 55,000 and $ 50,000 are very sensitive support levels right now,” Iadeluca said.

“I especially think that if the price of Bitcoin exceeds $ 50,000, it would indicate negative cyclical attributes for the price of Bitcoin,” meaning that this could serve as an early signal that the digital currency is heading into a bear market.

Scott Melker, a crypto investor and analyst who hosts The Wolf Of All Streets podcast, also spoke about the issue, offering what appeared to be a more bullish take.

“Technical indicators are calling for a ‘healthy correction’ rather than a ‘new bear market’ for now,” he said.

“The RSI is oversold in every time interval below the daily at this time,” Melker noted.

“Below 50k that would give me a break, of course,” he said.

“I think 53k is a likely area for a bottom here if it keeps going down. But I expect it to be in the foreground.

Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, EOS, and soil.

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