It's been on the cards for the past week, but the rapid selling on BTCUSD of the past 48 hours has finally brought us within touching distance of the 50 day Moving Average falling below the value of the 200 day Moving Average... otherwise known as a death cross and one of the strongest possible indicators that we are moving into an extended bear market - making the drop to 3200USD that many predict increasingly likely. Worth noting: the higher the trading volume, the more significant a death cross is with regards to a negative outlook.
Expect the Bitcoin death cross to occur within the next 24 to 48 hours.
An alternative point of view is that the value of BTCUSD had to drop by around 75% to get the 50 day MA so close to the 200 day MA and hence the bears may have run out of steam to push it much lower. It is not unheard of for a rally to follow a death cross, so both scenarios must be considered.
If the death cross comes to pass, we can expect the 200 day Moving Average to become the new resistance at around 9350USD - which tallies with my previous article, whereby the long term support has now become the future resistance at approximately the same value. If the death cross really cannot be avoided in the coming hours, we will have double resistance to Bitcoin moving back above 9000USD in the coming month, or at least until we emerge from the bear market... hopefully to a golden cross and return to a more bullish outlook.
Please hit the thumbs up if you found this informative, I will keep you updated as the market develops! Thank you!!
This analysis is for educational purposes only and not a recommendation to buy or sell. Always do your own research before trading.
Expect the Bitcoin death cross to occur within the next 24 to 48 hours.
An alternative point of view is that the value of BTCUSD had to drop by around 75% to get the 50 day MA so close to the 200 day MA and hence the bears may have run out of steam to push it much lower. It is not unheard of for a rally to follow a death cross, so both scenarios must be considered.
If the death cross comes to pass, we can expect the 200 day Moving Average to become the new resistance at around 9350USD - which tallies with my previous article, whereby the long term support has now become the future resistance at approximately the same value. If the death cross really cannot be avoided in the coming hours, we will have double resistance to Bitcoin moving back above 9000USD in the coming month, or at least until we emerge from the bear market... hopefully to a golden cross and return to a more bullish outlook.
Please hit the thumbs up if you found this informative, I will keep you updated as the market develops! Thank you!!
This analysis is for educational purposes only and not a recommendation to buy or sell. Always do your own research before trading.
