Bitcoin's rally above $ 50,000 did not last long, and charts show that the bullish move that started in July will subside soon. In fact, the cryptocurrency already fell 4.9% to $ 46.322 on Thursday, which, in turn, pushed other tokens, including Etherium, down. Even the Bloomberg Galaxy Crypto index posted a decrease.
All in all, the drop reduced the BTC rally to about 60%.
In line with this, John Bollinger, who is the inventor of Bollinger Bands, suggested that aggressive traders should consider going short as it is time to take profit or hedge.
Similarly, Katie Stockton of Fairlead Strategies cited the DeMark indicators as a two-week "sideways fall" in prices.
The narrowing of Bollinger Bands indicate that Bitcoin is weakening amid the resistance levels $ 50,000 - $ 51,000. The key threshold to watch is the middle line at $ 46,700.
Other analyzes indicate that Bitcoin is facing the challenge of scaling levels around $ 50,940, which, if fails, could exacerbate the bearish trend.
