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Bitcoin Trading Signal That Returned 1,152% Is Flashing Sell

Bitcoin Trading Signal That Returned 1,152% Is Flashing Sell

(Bloomberg) -- One of Bitcoin’s most profitable trading signals is indicating that the cryptocurrency’s terrible start to 2018 is poised to get worse.

An investment strategy based on the Moving Average Convergence Divergence indicator has returned 1,152 percent when applied to Bitcoin over the past 12 months, the biggest gain among 22 indicators tracked by Bloomberg.

The MACD based on daily prices turned bearish in December -- just days after Bitcoin peaked -- and continues to suggest the virtual currency will move lower. The same is true when using weekly prices. As the chart shows, a bearish signal is triggered when the white MACD line moves below the red signal line.

Bitcoin Trading Signal That Returned 1,152% Is Flashing Sell

Bitcoin sank 9.9 percent to $6,395.64 at 10:56 a.m. in Hong Kong, extending its slide from the intraday peak on Dec. 18 to 67 percent, according to composite pricing on Bloomberg.

--With assistance from Li Zhao

To contact the reporter on this story: Michael Patterson in Hong Kong at mpatterson10@bloomberg.net.

To contact the editors responsible for this story: Brian Bremner at bbremner@bloomberg.net, Sree Vidya Bhaktavatsalam

©2018 Bloomberg L.P.