FX.co ★ BTC losing momentum after its much-hyped halving in May

Bitcoin is about to complete its rally soon. Despite its robust advance over the last two weeks, technical analysis suggests that the most popular cryptocurrency is losing momentum. So, analysts share the bearish outlook based on the DVAN technical indicator which recognizes buying/selling pressure. This time, the indicator signals a new selling pattern. Bitcoin has declined below the trendline for the first time since late May. Earlier, the largest digital token briefly spiked above resistance of $10,000 but was unable to sustain a further climb. The price is expected to retrace back towards $9,500. Such sharp gyrations are a common thing for the crypto market. Nevertheless, experts warn traders about abnormal volatility in the short term. If bitcoin rises as high as $10,500, this could indicate the beginning of a new bullish cycle. Otherwise, the cryptocurrency is projected to test the new support level of $6,200.

“With the central bank printing money to stimulate the economy in light of the coronavirus pandemic and social unrest bubbling over, people are starting to see real life use cases for BTC and that decentralization matters,” said Voyager Digital CEO and co-founder Steve Ehrlich. “Because of this, Bitcoin is growing in popularity as a hedge against volatility in the traditional markets.”