Bitcoin Against $7,000 After Death Cross

Bitcoin (BTC) is currently hovering above $7000 even though it has a “death cross” (short-term moving average falling below long-term moving average) over the weekend.

The much feared technical indicator (below the 50-day moving average) drop below the 200-day moving average) took place this past weekend. However, according to CoinDesk’s report, this over-swing has provided a support point for the Bitcoin price.

At the time of this writing, CoinDesk’s Bitcoin Price Index is at $6,993 and has surpassed its 54-day low of $6,443 on Sunday. exists. It also appears to have recently traded at $7,060 on Bitfinex – 9.88 percent more than $6,425 a day ago.

This recovery fits well with the pattern Bitcoin has followed in the past.. Bitcoin tends to rebalance every time its RSI drops to 30 or below.

Daily chart

As seen in the above daily chart from Bitfinex Like the RSI, the RSI fell to 30.00 on Friday, suggesting that it has fallen more than necessary.. Essentially, the death cross was confirmed on Saturday, but it didn’t cause a significant drop in Bitcoin’s value.. For example, the 50-day moving average started flattening out a week ago and turned bearish, confirming that the daily RSI value is causing BTC to drop.

Weekly chart (on a linear scale)

Bitcoin is unaffected amid bearish conditions resulting from the rise of the ascending trendline and the weekly 50-MA.

So it looks like this coin had a short-term drop at $6,425 and could see $7,500-$7,600 in the coming days, as can be seen in the chart below.

4-hour chart

BTC is in a downtrend, but a clear break at $7,100 (channel resistance) could add to the bearish RSI and push Bitcoin to $7,500-$7,600.

However, a rise is not expected in the short term, because The 10-day moving average is affected by the bearish trend.

Daily chart II

In the above chart, the 5-day and 10-day moving averages are in a bearish trend and the $8,000 level is seen.

Overview

BTC seems to have experienced a temporary decline at $6,425.. A break above $7,100 could push Bitcoin value higher to $7,600.

We can’t say that Bitcoin won’t gain in value, but it will only happen after the 5-day and 10-day moving averages break out of the bearish trend.

On the other hand, $6,425 is an immediate support, if it breaks below this level, we might see $6,000 again in February. However, if we consider the short-term situation, the bearish trend is not likely to drop below the $6,425 level.

CoinDesk