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Will this time be different? Bitcoin eyes drop to $35K as BTC price paints ‘death cross’

Published 01/08/2022, 10:21 AM
Updated 01/09/2022, 12:20 PM
© Reuters.

Bitcoin (BTC) formed a trading pattern on Jan. 8 that is widely watched by traditional chartists for its ability to anticipate further losses.

In detail, the cryptocurrency's 50-day exponential moving average (50-day EMA) fell below its 200-day exponential moving average (200-day EMA), forming a so-called “death cross.” The pattern appeared as Bitcoin underwent a rough ride in the previous two months, falling over 40% from its record high of $69,000.

BTC/USD daily price chart. Source: TradingView
BTC/USD daily price chart featuring March 2020 death cross. Source: TradingView
BTC/USD daily price chart featuring death cross. Source: TradingView
BTC/USD daily price chart featuring Fib retracement levels. Source: TradingView

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Latest comments

the market is buying
Technicals dont really apply to bit coin with peaks and valleys running opposite to conventional price action. Remember there are clear central bank buy / sell order signatures and now they have been selling bitcoin to raise cash for post covid months. They will then re- pump it from a defined floor as they did last time .
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