Bitcoin falls out of its bullish channel

The Bullish channel that Bitcoin futures had been trading in for nearly six months (since late October) failed to hold as a price decline over the weekend brought Bitcoin futures down hard today. BTC futures closed down by 9.2% or $5,705 bringing them to $56,275.

This dip in Bitcoin’s pricing coincides somewhat with its shrinking dominance in the cryptocurrency space. Lately, over the past few months or so, Bitcoin’s dominance has declined to approximately 52% of all cryptocurrencies in terms of total market cap.

Although BTC is still trading above the three major moving averages (50,100,200-day), its break below its support trendline is a worrisome sign. Also today marks the first time in nearly six months when the RSI was below the upper band of 70, this could be signaling further price declines. We are sorry to report that traders that took our call last week to enter long positions in BTC from $60,500 were stopped out today with a loss of $1,500 per coin.