https://ift.tt/3riJWfs Bitcoin Due a 20% Death-Cross Correction? Here’s What the Charts Show

Following several predictions aimed at Bitcoin seeing a lot of bullish action this year, a change in events is seen unfolding. The latest Death Cross appears to be the reason behind this sudden change in sentiment.

Recent analysis has hinted at the phenomenon. While listing possible bearish indicators, the article stated that another one such metric is the impending death cross – one of the most dreaded phenomena of any instrument or asset. The 50-day MA and 200-MA are closing in on each other. We know based on these indicators that we will see more price drops.

The dreaded death cross took place less than 48 hours ago and is still racking up a lot of reactions. One such is from Twitter user Heidi, who claims that the bearish convergence of the 50-day as well as the 200-day moving average is meaningless.

The #Bitcoin “Death Cross” is one of the most meaningless charts one could post. Half of the time the Death Cross has been bullish and the other half bearish.

Heidi (@blockchainchick) January 16 2022

While the first trader appears to be unmoved by the interception, some have settled for the worst-case scenario. One such is Cheds, who believe that we may see a repeat of the chain of events in last year’s bearish MA cross – hinting at 15% decrease and a new ATH thereafter.

The last $BTC #Bitcoin daily “Death cross” was Jun 19th around 35k. Shortly thereafter we bottomed around 30k and then marched on to a new ATH in late October

Cheds (@bigcheds) January 16 2022

Reacting immediately to the death cross, Diego also called to mind 2021 bearish interception and declared that a 20% decrease may send Bitcoin as low $34,000.

#BTC:today narrative?#deathcross – Last time it printed we had a “nice” correction of about 20% in 3 days that brought the price to 29k (previous monthly CPR was 30k) – If the same should happen the price would go to 34kish area which is exactly the CPR level for previous month

Diego (@diego37261357) January 14 2022

What the Chart Says

Previous outlook cited CME gaps while explaining how low BTC could dip. After stating previous events the article stated there is another trading space seen between $34,300 and $32,700. Historically, these gaps are almost usually filled, although when it is filled is still a question that only time can answer. Nonetheless, we got a glimpse of how low BTC will dip.

The analysis concluded with a speculation of bitcoin between $34k and $32k. The possibility of a more than 20% decrease is looking more likely as BTC price movement is printing a head and shoulder pattern.

As per the rules guiding the said pattern, an inevitable price dip is looming. The death cross along with recent discoveries are indications that a retracement below $35k is undeniable.

Traders seem to be expecting such drop as social media are filled with projections of the top coin dipping the highlighted