Bitcoin Risks Losing Momentum After Climbing Back to $7,000

(Bloomberg) — Bitcoin’s ride above $7,000 floundered over the weekend and technical indicators now paint a bleak outlook.

The moving-average convergence divergence indicator — a measure of momentum — suggests Bitcoin’s bullish trend is losing steam. The coin recently hit strong resistance around $7,500 and could potentially be forming a new downtrend.

Cryptocurrencies have largely moved in conjunction with riskier assets over the past month, falling when equities come under pressure and rising when they gain. U.S. stocks initially sold off on Monday and Bitcoin dropped as much as 3.3% to trade around $6,900. Peer tokens, including Litecoin and Bitcoin Cash, also declined.

Earlier: Bitcoin at Inflection Point, With Technicals Signaling Weakness

“When equity markets sell off, all people want to own is cash,” said Jerry Braakman, chief investment officer of First American Trust, in Santa Ana, California, which is managing $1.8 billion. “When things are good, money will flow…