The Bitcoin price could likely be facing more turbulent times, considering the recent technical patterns like the formation of the Death Cross. It refers to the drop of a short term moving average for the cryptocurrency over time below a longer term moving average.
Bitcoin Price Forms Death Cross Pattern
In this case, the BTC price saw a death cross pattern as its 50 day short term moving average has breached its 200 day short term moving average.
— Steven Ehrlich (@Steven_Ehrlich) September 11, 2023
This is also being supported by the fact that in recent weeks, liquidity in the crypto market has been on a steady decline. According to Glassnode, both on chain and off chain volumes are about to reach historical lows. More importantly, further decline in Bitcoin price could likely mean that a huge part of the supply falls into a significant unrealized loss, which could officially mean the onset of the bear market yet again.
Case For The BTC Bull Run
On the positive side, Bitcoin has in recent months formed a Double Top Support pattern, which means it now has the support with resistance of two tops. Trader Tardigrade, a crypto influencer, stated that if the support in the current zone holds, there could be a massive bull run.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.