Bitcoin’s much-touted golden cross is almost underway but the momentum is nowhere to be found. The trend is shifting more towards the sellers as price struggles to stay afloat without collapsing. While analysts are waiting for the golden cross to lead the rally, Bitcoin is heading down to major support – $9,460. Potentially lower, if the trend continues.
- The golden cross is the only positive outlook for Bitcoin at press time as price dipped below $10,000 for the 4th time.
- A shift in the macro trend for Bitcoin might be underway as price heads down to major support at $9,460.
- The change in trend can be attributed to two reasons, major downtrend and $10,000 being an important level.
- Exhaustion of the momentum seems to be skewed towards the bears, hence, a retest of the $9,460 is on the horizon.
In part, the shift in trend is caused by a major downtrend spanning all the way from 2017. This downtrend was also a major hindrance that prevented Bitcoin’s exuberant rally in mid-2018. The second half of the reason has more to do with the psychology of the market. Much similar to the $,9,000, $10,000 is also a crucial level, where much of selling takes place. The rally that caused Bitcoin to surge through $10,000 might have hit a roadblock as the price is trading below that level for the 3rd day in a row.
All is not lost since the golden cross is still underway and could negatively impact the downtrend trend and historically, the golden cross is followed by a massive rally.
Daily Chart Bitcoin
The climb from $7,000 to $10,000 and beyond was a healthy rally, however, this surge was exponential, and hence a major correction can be expected. Possibly to yesterday’s close at $9,460 (February 17).
A deeper close of today’s candle would confirm the downward continuation and a clear shift in trend. Downtrend beyond the close of yesterday’s level will be cushioned by support at $9,060 or the 50-day MA, whichever comes first.
As Bitcoin trades at 9,660 at press time, the outlook grows bleak; the RSI is showing exhaustion of the rally aka the buyers and the entry of the sellers. This could flip if and only if the golden cross causes a FOMO, leading the buyers in.