Bitcoin is testing an important price level and fleeing the “cross of death”

  • Bitcoin lost more than 2.6% in price per day
  • However, the situation is much better than it was on Monday resistance

The scale of the fall in bitcoin from the record peak in November (68 thousand dollars) to the minimum of Monday (40 thousand) is %. If we applied the stock market criteria here, we would be talking about a bear market. But Bitcoin and the cryptocurrency market in general are more tolerant in this regard, so experts tend to see a correction here, rather than a bear market.

But everything can change if the BTC falls below the important barrier in 40 10 dollars. At the moment, support is working. In addition, oversold conditions help to stay afloat – it is signaled by the popular oscillators of technical analysis – RSI and MACD.

Here the emphasis should be on the word “bye.” Because until the rate breaks through the local December peak ($ ​​59 thousand), it will not come out of the current correction system.

Pattern “Cross of Death”

Traders have noticed a rare pattern that can form on the BTC chart – it is called the “cross of death”.

Analyst Lark Davis writes that this is the 9th “cross of death” in the history of bitcoin.

# bitcoin is about to hit the much feared “death cross” … but does it matter?

Well, there have been 8 death crosses in BTC’s history. 4 marked the bottom (approximately), and 4 came before sell offs of 40, 61, 65, and 68%.

What will death cross number 9 have in store for us? pic.twitter.com/RHmE3ulEMp

— Lark Davis (@TheCryptoLark) January 13, 2021

The death cross pattern indicates a long-term price decline. Of course, this is not always the case, but this warning should be kept in mind.

What about altcoins?

Recent weeks have shown that altcoins are even more sensitive to market turbulence. This is due to their lower liquidity. As a result, projects like Polkadot, Solana or ShibaInu are much more distant from ATH than Bitcoin.

The only exception was the Dogecoin meme currency. After they started accepting it again in the Tesla store, the asset went up by 13%, and his purchases on the Binance exchange increased by 52 once.

Related Articles

Check Also
Close
Back to top button