A technical sell signal is about to appear on the Bitcoin (BTC) daily chart, according to one analyst. It is stated that this signal was also seen earlier when BTC dropped from $36,500 to $28,800. cryptocoin.com We quote analyst Yashu Gola’s comments…
Scary signal for BTC?
According to analyst Yashu Gola, BTC price has experienced a death cross, a market indicator that occurs when the short-term moving average falls below the long-term moving average. In this case, Bitcoin’s 20-day exponential moving average (20-day EMA) closes below its 200-day exponential moving average (200-day EMA).
Given its history of predicting bearish trends, the indicator could warn traders of a potential sell-off in the coming sessions. For example, the death cross, which emerged on May 30, 2021, was instrumental in reducing the BTC price from $ 36,500 to $ 28,800 in 24 days. A similar death cross occurred exactly one day before the Bitcoin price plunged from around $8,000 to just below $4,000 during the pandemic-induced market crash of March 2020.
According to the analyst, Bitcoin has been correcting consecutively over the past four weeks and looks set to close the ongoing weekly session with losses. In the past 30 days, the BTC price has dropped by about 17.50 percent, including the correction from the record high of $69,000 on November 10, but has since rebounded. However, stating that the recovery has not turned into an uptrend, Gola states that Bitcoin price is in a downtrend and could test $42,000 after finding temporary resistance near the psychological level of $50,000.
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