- Bitcoin Bears take over as price drop towards $7,000.
- However, the death cross is not likely to do any major damage.
Crypto World: According to data from Bitfinex, since the 27th of March, the price of Bitcoin has been constrained between the ranges of $7,700 and $8,140. There was a time yesterday where it seemed like the Bitcoin bulls had found their foothold, thanks to a bullish triangle breakout, and an upside break of the sliding trend line. However, Bitcoin could not wad up through the supply around the $8k mark in the US session, this allows the Bitcoin bears to take charge. Consequently, Bitcoin plunged as low as $7k today at 04:00 UTC.
At press time, Bitcoin is worth $7,530 on Bitfinex, while the average price across leading exchanges is $7,540. This shows that Bitcoin has fallen 5% in comparison to yesterday’s close of $7,937.
As seen in the chart above, the relative strength index depicts a bear flag breakdown. This adds credibility to the bearish setup on the price chart.
Hence, Bitcoin seems set to test $7,260 (according to the measured height method) to $7,240 (a per 8th March low). Furthermore, the 78.6% Fibonacci retracement of the rally from the 6th February low to 20th February high remains at $7,239 as expressed in the chart below.
It can be seen that both the 5-day MA and 10-day MA sloped downward (inclined towards the bears). Also, the relative strength index has become bearish.
According to the chart above, Bitcoin is trapped inside lower highs and lower lows (a falling channel) and might possibly fall to between $6,100 and $6,000. This means that the much-dread and hyped death cross might occur today should Bitcoin drops to $7k. Nevertheless, the death cross might subsequently turn out a blessing for the bulls.
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