The 50-day moving average has deviated below the 200-day moving average, forming a death cross on the bitcoin daily chart.

When there was a death cross in the past, bitcoin dropped 63% from $42,400 to $15,700 between January and November of 2022.

Although it is a well-liked technical indicator, it is not perfect. A death cross in 2020 was not followed by any selling at all, and a death cross in June 2021 was only accompanied by a 20% decline.

A test of $25,000 this week found buyers, but a break might result in a drop below $20,000 or the lows of January near $17,000.

Technical analysis of bitcoin: This crucial support is still in place.

Global growth slowdowns and monetary policies hinder bitcoin’s outlook, with rangebound near support. Technical analysis can help manage risk and make short-term directional plays amid uncertainty.

The daily chart of bitcoin displays a negative bias as it declines towards the 25231 support and rebounds towards the 21 moving average. It might rally back into the 28400 resistance if it breaks above the 21-day moving average.

This week’s significant events include the release of the Jobless Claims, PPI, and Retail Sales data, as well as the release of the University of Michigan Consumer Sentiment report. Strong data could shift market expectations, strengthen the USD, and potentially hurt Bitcoin.

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