The latest bullish rally initiated by Bitcoin over the weekend signifies that the cryptocurrency is gradually overshadowing the bear, and it is possible BTC revisits this year’s peak.
Bitcoin now have its resistance around $10,000 level, and $9,000 being the psychological support as the cryptocurrency continues to hang over $9,300 level.
Bitcoin saw a break above the 23.6% Fib retracement level of $9,194 low and $9,523 high, and it continues to test 9,500 and $9,600 resistance levels.
However, a long-term indicator of Bitcoin’s price shows that the cryptocurrency has just made a ‘death cross’ similar to that witnessed in March 2018 when Bitcoin saw significant price drop from its peak.
Bitcoin’s 50-day MA cross below the 200-day MA affirmed the death cross, nevertheless, indicators have it that Bitcoin, for some reasons, isn’t in the dangerous zone.
Probably due to the positive drive of Bitcoin in the market, people failed to accept the authenticity of the death cross. Normally, the rise of the 200 day MA line above the 50 day MA signals a big bad bear market, but experts determine the technical importance of cross based on the trend that initiated the cross, an analyst by name MagicPoopCannon on Trading View has said.
Also, other underlying indicators such as weekly momentum on the MACD is very significant in determining the trait of the cross.
According to the analyst MagicPoopCannon, Bitcoin has just registered a death cross after staying on the downside in the last four months, recording lower highs and lower lows since testing 13,800 peak. Although we now have a transition back towards the upside, Bitcoin’s momentum is bearish on the MACD.
The latest rally displayed by the leading coin shows that BTC has rallied back above 50 and 200 MA death cross, and could be in a massive bull flag. The Gaussian Channel is green and rising, and BTC has held above the 61.8% retrace (blue line) according to the expression made in the image below.
Image Credit: Trading View.
The analysts furthered that even though the MACD is yet to register a bullish crossover, it is turning towards the upside and we can expect BTC to make a breakout of the bull flag.
A print on the chart’s higher high by BTC will solidly affirm a strong indicator on the upside trend. However, if BTC fall below the 50 and 200 MA again, and the 61.8% retrace, we would be risking a major nosedive.
Hence, the death cross come along with a mixed technical signal, the analyst concluded.