Bitcoin has yet to recover from its unexplained weekend swoon, and now the investing public is on edge about the notoriously volatile token’s next move. Enter the chart watchers.
Noting that “a chart is a chart is a chart,” Tallbacken Capital Advisors’s Michael Purves -- weighing in on crypto for virtually the first time -- sent a note Wednesday with a technical analysis of the coin’s trading patterns. Bitcoin’s recent highs weren’t confirmed by its relative strength index, among other things, and its upward momentum is fading, he said.
“From purely a technical perspective, the bullish case looks highly challenged here in the near term,” after its recent rally, wrote Purves, chief executive officer at the firm.