Bullet Points:
1. Bitcoin is approaching a crucial level which may have a larger impact on its price in the coming days.
2. Bitcoin is close to witnessing a death cross, which is when the 200-day MA and 50-day MA cross each other and the 200-day MA heads towards the lower support.
3. Trading View suggests that the death cross is expected to happen in the next week or two and the price may still undergo a bullish divergence.
Bitcoin is on the verge of undergoing a bearish event which could have a major impact on its price in the short term. The star crypto is about to witness a death cross in the weekly timeframe for the first time in history, which is when the 200-day moving average (MA) and 50-day MA cross each other and the 200-day MA heads towards the lower support.
Bitcoin price has already slipped down below $23,000, creating a wave of uncertainty over the crypto space. The altcoins which had risen above their respective resistance levels have dropped below the levels, which could flash the revival of a bearish trend. The death cross may further intensify the bearishness and the impact is being expected at a larger scale in the daily chart with the price being expected to drop by nearly 7% to 10%.
Trading View suggests that the death cross is expected to happen in the next week or two as the prevailing bearish formations may impact the price negatively. However, the price may still undergo a bullish divergence due to the bullish momentum seen in the last few weeks. Bitcoin price is up by 50% from the November lows and throughout history, the price has surged by such a major margin.
The impact of the death cross remains to be seen, as analysts are split on whether it will be bearish or bullish. While some are expecting the death cross to mark the beginning of a bearish trend, others are expecting it to mark the beginning of a much larger bullish trend. It is important to note that the death cross is not necessarily a bearish indicator, and it can also signal the start of a larger uptrend.
It is recommended that traders exercise caution and take a wait and see approach before making any decisions. The death cross could indeed mark the beginning of a larger trend and it is important to be aware of the implications of such an event. As always, it is advised to do your own research before investing.
