{"id":411949,"date":"2020-01-22T14:31:47","date_gmt":"2020-01-22T14:31:47","guid":{"rendered":"https:\/\/wncen.com\/?p=411949"},"modified":"2024-06-11T11:30:26","modified_gmt":"2024-06-11T11:30:26","slug":"bitcoin-indicator-that-crashed-price-to-3-1k-returns-the-dreaded-death-cross","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-indicator-that-crashed-price-to-3-1k-returns-the-dreaded-death-cross\/","title":{"rendered":"Bitcoin Indicator that Crashed Price to $3.1K Returns: The Dreaded Death Cross"},"content":{"rendered":"
Bitcoin is looking to repeat a technical pattern that crashed its price to $3,120 in late 2018.<\/p>\n
The leading cryptocurrency by valuation made a rebound from levels near $13,920 during June 2019. It plunged by more than 53 percent in the later sessions, falling to establish a local bottom towards $6,410. Entering January 2020, an upside recovery pushed bitcoin’s rate to a swing top of $9,190.<\/p>\n
https:\/\/twitter.com\/TheCryptoDog\/status\/44253696<\/p>\n
The latest move uphill improved the cryptocurrency’s interim bullish bias. Analysts predicted further gains<\/a>, expecting that investors would consider bitcoin as a haven against gloomy macroeconomic sentiments, including the Federal Reserve’s injection of $500 billion into the repo market<\/a> that could raise demand for hedging assets.<\/p>\n Nevertheless, a dreaded technical indicator is giving an alarming view of the bitcoin market. It shows that the cryptocurrency’s recent gains are a part of a more prominent drop that may come later and crash the price to as low as $2,300.<\/p>\n So it appears, the bitcoin’s latest price cycle is strikingly similar to the one it formed upon establishing circa $20,000 as its all-time high.<\/p>\n ‘Cycle 1’ in the chart below shows the price corrected wildly upon the top formation. It made lower highs on each move upward while maintaining the long-term selling outlook. As it did, bitcoin also formed a Death Cross<\/a> when its long-term moving average (blacked) closed below its near-term moving average (blued).<\/p>\nDeath Cross in a Death Cycle<\/h2>\n