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Analysis

Bitcoin’s death cross follows a pattern disappointing longs

Namrata Shukla

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Source: Pixabay

After the 23% fall on 24 September, Bitcoin has not managed to boost its price yet. Bitcoin made multiple efforts to recover from the fall, but the strong bearish trend restrained the price under $9k. At press time, the king coin was valued at $8,362.99 with a market cap of $148.87 billion, noting a meager fall of 0.14% in the past day.

Bitcoin’s price has been falling over the past week, giving rise to a bullish pattern that will boost its growth.

Source: BTC/USD on TradingView

Source: BTC/USD on TradingView

The daily chart of Bitcoin suggested the formation of a descending channel along with the dipping price. The channel contained the price and marked lower highs at $8,730.54, $8,531.60, $8,424.48, and $8,302.05 and lower lows at $7,919.48, and $7,781.75. Bitcoin lost 6.75% within the channel and a breach of this arrangement might cause positive spikes in the BTC market.

50 moving average laid dormant under the 100 moving average for the 31st day, causing the market to lose 18.31% of its value. Bitcoin’s price fell from $10,055 to $8,213.65 and hasn’t managed to turn the strong bearish current. The extreme bearishness in the market was indicated by the averages aligning above the candlesticks.

Source: BTC/USD on TradingView

Source: BTC/USD on TradingView

MACD indicator reflected a weak bullish momentum in the market as MACD overtook the signal line. Relative Strength Index remained between the buyers and sellers zone, indicating that the buying and selling pressures have reached equilibrium.

Conclusion 

Bitcoin price might notice a surge with the breach of the descending channel, but in the meanwhile, the price might continue to descend due to the strong bearish presence.

Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.