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Technical sell signals are about to appear on Bitcoin (Bitcoin) Daily chart.
On December 18, the price of BTC will experience Death cross, A market indicator that appears when the short-term moving average is lower than the long-term moving average. In this case, Bitcoin’s 20-day exponential moving average (20-day EMA) will close below its 200-day exponential moving average (200-day EMA).
Given its history of predicting bear market trends in advance, this indicator may eventually alert traders and investors that there may be a sell-off in the next few trading days.For example, the 20-200 bearish crossover on May 30, 2021 helps BTC price dropped from 36,500 USD to 28,800 USD In the next 24 days.
There were similar deaths during the period Market crash caused by the pandemic in March 2020, Just the day before the price of Bitcoin fell from nearly $8,000 to below $4,000.
Bitcoin faces the risk of being revised to the range of USD 40,000 to USD 40,000
In the past four weeks, Bitcoin has been continuously correcting, and it looks like it is preparing to end the ongoing weekly trading session losses, mainly due to The Fed takes more aggressive action on inflation.
In the past 30 days, the price of BTC has dropped by nearly 17.50%, including A record 69,000 USD November 10. In the process, the cryptocurrency briefly fell to $42,333, and then rebounded sharply, cutting some losses, as shown in the chart below.
Nonetheless, the rally did not turn into a bullish reversal-Bitcoin prices have been falling after finding temporary resistance close to the psychological level of $50,000.
Bitcoin Efforts to retest $50,000 The bullish breakout faces the resistance of the descending channel resistance trend line, coupled with the additional downward pressure from the 20-day EMA and 200-day EMA waves, they are also located near $50,000.
related: Bitcoin shorts lack the “ball” to continue to sell until 2022-Analyst
Therefore, the path of least resistance for Bitcoin seems to be the downside. With the death cross imminent, the cryptocurrency may continue to trend in the descending channel to test the level of around $42,000 for a strong correction.
If the decline accelerates, the price may next target $40,000 as a downside target.
RSI factors
A lower leg will also push Bitcoin’s daily relative strength index (RSI) into an oversold zone below 30, which is a buy signal.At present, the momentum indicator has been trying to break its downward sloping trend line, which was previously predicted Bitcoin’s local price bottoms.
On the short time frame chart, the RSI has been consolidating sideways, and it is expected that it will break through the rectangular range and move upward. At the core of this optimistic outlook is the September 2021 fractal, shared Author: Mozzi, an independent crypto market analyst.
“Bitcoin has followed a similar structure since the end of September,” the analyst famous Saturday.
“Pay attention to the RSI consolidation. Wait for the clear breakthrough of the upper trend line as confirmation.”
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.
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