Bitcoin bulls are slowly rising from the shadows following a gruesome month of price action. The world’s largest cryptocurrency by market cap is now greater than 30 percent down from October’s peak of $10,350. Nonetheless, since dramatically falling to lows of $6,500 on Monday, Bitcoin has skilled a 10% bounce again as much as the $7,150 area.
However, the relief rally might all be useless for Bitcoin as each day; death cross has now come to fruition after weeks of nervous anticipation.
With the 50 EMA crossing the 200 EMA to the downside, Bitcoin now seems to be set to discover a path to yearly lows with an extra 60% correction on the horizon. It’s price noting that the exponential shifting average death cross has occurred simply three times since 2014, with the earlier crosses taking place through the morbid bear markets of 2014 and 2018.
A continued dive in price will undoubtedly drive away a large part of the retail investors still tied to this trade, though data suggests that most retail investors gave up in 2018. The surge from $3,150 to $14,000 earlier this year was brought on by a spike in institutional investment coupled with the hype surrounding Facebook’s proposed launch of a cryptocurrency.
Nevertheless, with Bitcoin now around 50 percent down from its yearly excessive, it’s unlikely that establishments will wish to go anyplace close to it till a prolonged bounce comes into play.
Consistent lower highs since $14,000, just like the lower highs from $20,000 in 2018, is a clear signal of a bear market, and traders should approach with caution.