The positive momentum in the crypto markets is now being overshadowed by a crossing of two significant moving average lines. A death cross occurs when the MA-50 crosses below the MA-200 line. This time the crossing between the MA-100 was crossing under the MA-200 line. Looking at the historical incidents where this cross happened, the market has reacted negatively last time causing a 15% correction in June – July 2021 after the previous incident of a death cross. Technical Analysis by: Long Term Edris – The daily Bitcoin has been rising for the past few days. The positive signal point is that BTC price has already broken above the major bearish trendline and is soon trying to reach the 50-day MA resistance line. However, the negative point to be highlighted here is that the 100-day MA fell below the 200-day MA. The last time this cross happened was in the final stage of the heavy correction in mid-2021. The price then fell more than 15% – below $30K, completing the latest bearish leg before a significant rally ending on Bitcoin November ATH of $69K. Short Term – 4 Hours On the 4 hour time frame, it is clear that the price is currently being rejected in the $45k resistance area. In addition, the RSI indicator shows that bitcoin is “overbought” in the 4-hour time frame and that a correction is imminent. From a technical perspective, there is a high probability that the price will experience a correction in the $39k range, completing the first major pullback after breaking the major bearish trendline. However, one must keep in mind the price action as a deeper correction to the $33k range (January lows) is achievable, especially with the daily MA100/200 cross. Onchain Analysis by: Shayan The N/A (Network Value to Transactions) ratio illustrates the relationship between market capitalization and transfer volume. It is similar to the PE (Price to Earnings) ratio used in the stock markets. NVT is a metric that determines whether or not Bitcoin’s blockchain network is overvalued. Historically, when the price fell below the 90-day and the 28-day MA N/A price, it was an excellent opportunity to follow the DCA strategy to accumulate Bitcoin. Currently, the price is below both N/A prices, indicating that the network is undervalued and considered an ideal time to start a DCA accumulation. In addition, a day trader can start realizing the profit when the price moves above the N/A prices. SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and get $100 Free and 10% Off Fees on Binance Futures First Month (Terms and Conditions). PrimeXBT Special Offer: Use this link to register and enter POTATO50 code to receive up to $7,000 on your deposits.Disclaimer: Information found on CryptoPotato is that of quoted writers. It does not represent CryptoPotato’s views on buying, selling or holding any investments. You are advised to do your own research before making any investment decisions. Use information provided at your own risk. See Disclaimer for more information. Cryptocurrency Charts by TradingView.
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