Bitcoin and altcoins have been experiencing declines recently due to the increasing uncertainty about the Fed’s interest rate cut, the Fed’s hawkish stance, and the longer-than-expected US government shutdown.
At this point, while the weakness in the crypto market continues this week, FOMC minutes and US employment data are expected, and it is stated that these data will be the main variables in future price determinations.
Bitcoin fell below $95,000 to a six-month low during the day. As key economic indicator releases were repeatedly postponed due to the lockdown, the Fed had less data to decide whether to cut interest rates, and investor confidence waned.
Bitcoin faces further decline risks!
In light of this weakness, analysts are predicting further declines for Bitcoin. At this point, they predict a death cross for BTC, putting the price at risk of falling to $83.5,000.
Bitcoin has fallen below $94,000 for the first time since early May, according to analysts speaking to CoinDesk, and as a result, fear is rising in the markets.
According to on-chain analyst Ali Martinez, BTC has broken out of a parallel channel, opening the door to a possible drop to $83,500.
Apart from Martinez, Benjamin Cowen, founder of IntoTheCryptoverse, also stated that a death cross occurred on the BTC chart recently.
A death cross is when the short-term moving average crosses below the long-term moving average and is interpreted as a bearish signal.
Cowen stated that such events historically indicate corrections, but added that the outcome is not definitive and that the rise or fall depends on the market cycle.
“Historically, in past cases, local bottoms have sometimes occurred instead of declines.”
Stating that it is still unclear whether the bull cycle is over or not, Cowen said that if the cycle is not over, it should experience a recovery within the next week.
However, the analyst warned that if BTC fails to recover in this timeframe, another sharp decline could occur followed by a recovery towards the 200-day moving average, which could form a lower peak within the downtrend.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/analysts-warn-theres-a-death-cross-in-bitcoin-a-drop-to-this-level-is-possible/
