Analysts are looking at Bitcoin today and wondering whether it’s going to move up from a position near $3500, or spiral down into the lower depths of the “30s register.”
“Yesterday, January 31, the price of Bitcoin was in the bullish trend zone,” Azeez M. at Bitcoin Exchange Guide writes today. “The bulls reached the high of $3,553.40 and was resisted at the $3,600 resistance zone. The crypto fell and the bears broke below the 12-day EMA and the 26-day EMA. The price of Bitcoin is now trading at $3.477.70 in the bearish trend zone. Since the BTC price is below the EMAs, the crypto’s price may likely fall … On the downside, if the bearish trend continues, the crypto will fall and find support at the previous lows of $3,200 or $3,000.”
Some of today’s activity makes more sense within the context of the 5-day week.
On the 27th, doing a post-morten on how far the household cryptocurrency has fallen, writer Benjamin Pirus at Cryptopotato chronicled about what he noticed as a “death cross,” which sounds a lot more heavy metal than it is. Technically speaking, the death cross happens when the 50-day MA crosses the 200-day MA.
“In the crypto space, Bitcoin’s death cross earlier this year appears to have been a powerful turning point for crypto’s previously bullish trend,” Pirus wrote, in a piece that shows relevant charting action. “The crypto market still shows signs of an intense bear market almost ten months after Bitcoin’s daily MA death cross.”
Actually, Pirus described two death crosses – one early last year, and one in 2014. Both corresponded with significant bear markets.
It’s also interesting to note that VTC has not broken its prior price in that whole 5-day period after Pirus’s piece came out: on Monday it was up around $3640; right now it’s down about $120 from that, or, if you like, 3%.
What will happen to Bitcoin? Will it ever achieve any of its past glories?
Near the end of his soliloquoy, Pirus mentions a “golden cross” that traders could look for as a corresponding bull sign. Until then, many with a significant stake in BTC have become buy-and-holders, trading on the long-term notion that institutional buy-in may come to save the day. Watch next week to see if BTC recovers.