Bitcoin's monthly log-scaled chart shows:
So, the cryptocurrency appears on track to test the 100-month SMA, currently located at $12,301. I would place stop above the descending 5-month SMA, currently at $22,900. We might get a spike above that, in which case, I recommend exiting the short trade. However, if prices fall back below the 5-month SMA, then re-enter the short.
- Acceptance under the 50-month simple moving average after July's temporary move above the said level. Bitcoin never settled below the 50-month SMA during the previous bear cycles.
The 5-month SMA is about to cross under the 50-month SMA, the first bear cross between the two on record.
The trendline from 2August 2015 and March 2020 lows has been breached.
So, the cryptocurrency appears on track to test the 100-month SMA, currently located at $12,301. I would place stop above the descending 5-month SMA, currently at $22,900. We might get a spike above that, in which case, I recommend exiting the short trade. However, if prices fall back below the 5-month SMA, then re-enter the short.
Trade closed manually:
Exit shorts for now.