Tom DeMark identified the bitcoin downside in March. Here’s the good and bad news the technical strategist now has for the cryptocurrency.
Technical strategist Tom DeMark in March said bitcoin could fall as low as $18,418 — back when the cryptocurrency was trading as high as $48,000.
A volatile weekend had bitcoin BTCUSD, +0.70% briefly trading below $18,000, as it traded around $20,000 on Monday, down some 70% from its Nov. 10 peak of $68,924. Bitcoin has collapsed in value as the Federal Reserve began lifting interest rates.
DeMark’s indicators place great importance on the number of days, which don’t have to be consecutive, in which there was a close lower than the close two days ago. Subject to various conditions, when the countdown reaches 13, a buy signal is triggered. (The opposite applies to sell signals.) Put more simply, his analysis looks for both overbought and oversold signals.