Over the last four days, the price of BTC (bitcoin) has continued to decrease. Furthermore, it has only served to bolster the case for the Bitcoin Death Cross. Many analysts and market commentators have warned that it could have a negative influence on the stock market. Indeed, the market is already on fragile ground, so another bearish occurrence would be the absolute last thing that a business needs right now.
BTC (bitcoin) has dropped about 5% over the past 24-hours after breaking through the $36,000 support level. The world’s largest cryptocurrency by market capitalization is still about 23% year-to-date, but some traders are concerned about a looming ‘death cross,’ which could signal a shift from a bullish to a bearish price trend.
The death cross defined as a crossing of the 50-day moving average below the 200-day moving average, which could happen this weekend. Nonetheless, some analysts remain bullish on bitcoin in comparison to equities.
“When the equity tide eventually recedes, we expect bitcoin and gold to be the primary beneficiaries,’’ wrote Mike McGlone, commodity strategist at Bloomberg Intelligence, in a report published on Friday.
As of writing, prices of major cryptocurrencies like BTC (bitcoin) are now at $35,867.10 and have dropped by 5.63% in a 24-hr chart. ETH (ether) on the other hand is now at $2,238.07 and declined 4.62% in a 24-hr chart in a data by Crypto.co.
Traditional markets on the other hand are as follows:
- S&P 500: 4166.45, -1.31 %
- Gold $1769.37, -0.19%
The Technical Backdrop Deteriorates
Newton’s cycle work indicates that this year’s performance will be weaker than usual. “For those who are aggressive traders, any break of 30k should lead to a drop to 20-25k, which should be a better area to consider buying dips for a bounce,” Newton wrote.
Given the break below prior lows, Newton anticipates a volatile decline in ETH (ether) over the next one to two weeks.
The price of BTC (bitcoin) has been continuously fluctuating in the previous weeks and has even resulted in the recent market crash.