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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Bitcoin: Technicals remain bearish as Chinese central bank cracks down on the cryptocurrency

CoT bias further majority short as Bitcoin’s price slides to break the $7,000 level, retail bias extreme long and rising.

Bitcoin Source: Bloomberg

Bitcoin Technical analysis, overview, strategies, and levels

Another tough consecutive week for Bitcoin’s price, and the general crypto market as well, with the Chinese central bank’s formal announcement of a plan to crack down on the crypto business certainly not aiding the decentralized cryptocurrency, even if the country prepares to embrace the underlying blockchain technology and likely a digital currency of their own. Price crossed below both its 50-week and 100-week MA's, finishing just above the 50 but needing little to cross back below it. On the daily it’s a clear bear trend technical overview and anticipating from a speculative standpoint an ongoing but retraceable declines back down as the speculative surge to near $14,000 levels unwinds. But a lack of momentum on the weekly means contrarian sell breakout strategies may be ideal for limited profit-taking.

Bitcoin TA Source: IG charts
Bitcoin TA Source: IG charts

IG client and CoT sentiment for Bitcoin

There’s been little change in retail sentiment which stands at an extreme long 84%, while CoT (Commitment of Traders) bias has risen to a majority short 61%.

Bitcoin sentiment Source: IG charts
Bitcoin sentiment Source: IG charts

Bitcoin Chart with institutional sentiment

Bitcoin chart Source: IG charts
Bitcoin chart Source: IG charts

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