Bitcoins dip is now a thing of the past as its price has rallied constantly from $3,860 to its current price of $6,740. With a 10% surge in the last 24-hours, the king coin is performing comparatively better than it did last week. However, this surge might be coming to an end considering the formation of an extremely bearish pattern – Death Cross.
Death Cross is when the 50-day moving average moves under the 200-day moving average. Usually, the 200 DMA is (considered) as a line that separates the bull run from the bear run by a majority. Hence, when the fast-moving average goes under the slow-moving average, it is considered as a bearish sign.
- Bitcoin’s 21% surge in the last 24 hours seems to be coming to an end with death cross looming over the price.
- Depending on where the price closes today, the next target will either be $6,440 to $5,770 or $7,400.
24 Hour Bitcoin Chart
Bitcoin its descent on February 24, 2020. While nobody expected the price to collapse by the amount that it did, the price of Bitcoin went from $10,030 to $3,860. This was a fall that stunned the entire ecosystem. However, since this drop, BTC has managed to rally to $6,700, which happens to be the current price of Bitcoin.
As shown, there is overhead resistance at $6,825 that BTC has faced and rejected. As mentioned, Bitcoin’s future depends on this aforementioned resistance and breaching this level would mean a bullish trend. However, if it fails, the price will head lower to the next immediate support.
If today’s close breaches $6,825, then the next target for Bitcoin would be the intersection at the sloping resistance – $7,400. Unless the price breaches manage to breach the resistance today, the price will drop to the first support at $6,440, further bearish pressure would push the price to $5,770.
The relative strength index supported the bullish view since there is more room until the index reaches the overbought zone. Further, the 50 DMA has already dipped and is very close to the 200 DMA and seems like it might cross over to the bottom.
In the next day or two, the death cross will have happened and would be extremely bearish for Bitcoin. Unless the price continues to surge and this might undo the death cross.
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