Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

TOP SEARCHES

Stocks popular

Crypto

Currencies

CFD

Support

Bitcoin on the Brink: Death Cross Signals Potential Sell-Off Amid Market Fluctuations

image
icon 08/08/24
icon 81

Bitcoin on the Brink: Death Cross Signals Potential Sell-Off Amid Market Fluctuations

Bitcoin is currently experiencing a significant technical formation on its chart. After a month marked by alternating bullish and bearish trends, recent analyses have indicated that the cryptocurrency is on the verge of a “death cross.” This pattern is particularly concerning following Bitcoin’s sharp decline earlier this week, where its value plummeted to around $49,781.

The death cross is a technical chart formation that signifies the potential for considerable sell-offs. This occurs when a cryptocurrency’s short-term moving average, commonly the 50-day, crosses below its long-term moving average, often the 200-day. This situation suggests that Bitcoin’s short-term momentum has weakened compared to its long-term trend. However, it’s important to mention that not every instance of a death cross leads to extended periods of bearish performance. Bitcoin has historically shown resilience, rebounding from previous death crosses, such as the one observed in March 2020, which preceded a significant rally later that year.

As of now, Bitcoin’s price has seen a slight recovery, trading at approximately $57,200 after reaching a peak of $57,707 earlier. This recent fluctuation has resulted in the asset’s market capitalization shedding over $200 billion in just one day. Interestingly, despite the decline in price, Bitcoin’s trading volume has surged, climbing from $26.7 billion early Wednesday to over $43.5 billion later.

Analyzing Bitcoin’s chart further, a well-known cryptocurrency analyst noted the presence of a “classic rising wedge” formation. This pattern suggests that if Bitcoin breaks the support level at $56,800, a downward correction to around $54,500 could be expected. Conversely, if Bitcoin manages to close a trading candle above $58,000, the bearish pattern might be deemed invalid, potentially signaling a stronger upward trend.

Recomended for you

image

Crude Prices Drop After IEA Monthly Report

On Wednesday, crude prices dropped and gave back earlier gains after the IEA reduced its forecast for this year’s demand...

May 15, 2024
icon 271
May 15, 2024
icon 271
prev next
This site is registered on wpml.org as a development site.