There’s an ominous “Death Cross” maturing on the Bitcoin price chart, foretelling a grim outlook for the cryptocurrency soon.
The benchmark cryptocurrency has tumbled aggressively after forming a record high near $41,986 (data from Coinbase) on Friday. At its recent low, it was trading at $30,100 but managed to instill hopes of a bullish revival as traders bought the level, pushing prices above $35,000 as of this Tuesday.
Nevertheless, the intermingling between Bitcoin’s short- and long-term moving averages on a four-hour chart has raised the alarm about a potential bearish continuation ahead.
The cryptocurrency’s 20-period EMA, viewed as a tracker of short-term trends, slipped below its 50-period SMA, seen as an indicator of slightly long-term price patterns. That led to the formation of the Death Cross, a pattern that traders view as a signal to increase their short exposure in the market.
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