Bitcoin is on the verge of a new death cross, onchain data reveals. This could worsen the current correction both for Bitcoin and altcoins. At the moment, the sentiment is negative with no recovery in sight.
Key Takeaways:
- Bitcoin is moving towards a new death cross, which means the trend will turn bearish.
- If this happens, both Bitcoin and the rest of the market will see further correction leading to lower prices.
- Market sentiment is currently highly negative, increasing the chances of the death cross happening but a reversal is also possible.
A crypto influencer, Mati Greenspan shared a chart of Bitcoin’s price showing the potential death cross which is a big deal for Bitcoin.
According to the chart, the last time Bitcoin had a golden cross (a change from bearish to bullish) was in May, bringing it into the bullish trend that led to the all-time high of $126,000 in September.
A Gloomy Future for Bitcoin
A death cross is a situation in which Bitcoin’s moving averages (continuously updated mean price for a period of time) cross each other, with the shorter timeframe crossing below the longer timeframe.
In the case of Bitcoin, the 200 moving average is about to cross above the 50 moving average on the daily chart.
This effectively causes a trend shift from bullish to bearish for the asset, meaning a further drop in the price will follow next.
As Bitcoin is already trading at just over $102,000, such a correction will potentially take the price below $100,000, something crypto analysts have already predicted.
Crypto Bloodbath Could Be Far From Over
The entire crypto market usually takes its cue from Bitcoin as the top asset has dictated price movements over the years.
This means a death cross and by extension a price correction for Bitcoin could affect the entire market, further worsening the ongoing bloodbath.
As it stands, the sentiment is highly negative not just for retail but also institutional investors, as it is seen from the Fear and Greed Index which shows extreme fear.
On the positive side however, history has shown that it is at such a point of negativity that the market can turn around for a rally.
More Must-Reads:
- Whales Dump $1B in Dogecoin – Panic or Perfect Entry?
- 440M Doge Dumped in 72 Hours – Time to Panic?
- $112k Smackdown: Bitcoin Gets Rejected Again
What do you think?
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