bitcoin

Death Cross and Bitcoin Price Movement Next Week

Death Cross has occurred and has merely affected the bitcoin price movement, is the danger still hovering over?

A Death Cross in bitcoin is a technical event that signals an upcoming Bearish Market, meaning trouble for Bitcoin. This is a cross-over of 50 days moving average and 200 days moving average, resulting in a -70% dip in 2018.

Bitcoin is trading $34510 right now and Still bitcoin price trading between a range-bound for 32 days. It’s hard to predict the price movement in the coming week and month but technically, the chart says a lot about price.

First, the death cross. The intersection of the 50 and 200 MA. Is this bearish or bullish in Bitcoin?

If we look at the last 6 years, of the 4 times this death cross occurred, there was the following drop at the time of the crossing and the rise or fall after:

  • September 16, 2015 decreases 0% increase 123%
  • April 2, 2018 decreases 3% increase 50%
  • October 26, 2019, decreases 0% increase 16% After this increase followed by a decrease of 36%
  • 25 March 2020 fall 13% rise after this fall of no less than 1033%

So bearish I absolutely cannot call this crossover, the effect is so delayed that it has probably long been incorporated into the price.

An analysis of Bitcoin is a bit more difficult at the moment because we are in the middle of the range. Reading the chart tell the followings:

  1. A completed bullish falling wedge with a breakout.
  2. A key level of 35000 which is also the very important 0.618 Retracement.
  3. It seems that we have set a double bottom at this 0.618 level
  4. I see the death cross as a neutral element but certainly not a more bearish one as evidenced by my data over the last 6 years.bitcoin
  5. The price of Bitcoin is sitting as much as 25% below the 200 MA and that is a magnet that eventually pulls the price back in.
  6. The RSI on daily basis has not broken the rising support line. I expect a bounce here.
  7. New reversed head shoulder formations in the works (right shoulder currently)
  8. A mini reversed head shoulder formation with the neckline at the 0.5 Fib level. Target 38158.

A magic point is Jun 24, midnight when the neckline, resistance line, and rising trendline meet. Hopefully, this is the last week of bearish trends and we might see a pump next Monday if Bitcoin survives the Death Cross.

This is not an investment advice, DYOR.

About mnmansha

MN Mansha is a cryptocurrency expert, trader, and content writer with extensive experience in covering everything related to digital assets — from price analysis to Blockchain disruption. Mansha authored 100+ stories for NewsBSC.com and other fintech media outlets and he's actively writing more every day. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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