Bitcoin is dangerously close to a new ‘Death Cross’

Bitcoin has had a pretty bad few weeks and there are as many alarm bells as requests for reassurance, but it is approaching a death cross.

Bitcoin has not raised its head for a season and with a value that a few months ago it was unthinkable for it to reach. Its price at this time is only $ 42,127 and there is a fear that it will fall even more.

The reasons for this fall in bitcoin are various, from the changes that may occur in the Federal Reserve to combat rising inflation rates in the conflict in Kazakhstan that directly affects cryptocurrency mining. In addition, much of it came from China after its ban.

In some media they report fear of plummeting to $ 35,000, which could lead to what they call a death cross.

As reported in Cointelegraph, “The cryptocurrency’s 50-day exponential moving average (50-day EMA) fell below its 200-day exponential moving average (200-day EMA), forming a so-called ‘death crossover’“.

These crosses serve to reflect variations in market sentiment, especially changes from an uptrend to a bearish one that would mean a great exit of investors.

You have to think that bitcoin reached $ 69,000 on November 10, 2021, but that time already sounds very far in the market and we are in a totally different context.

This would not be the first time that bitcoin has met a death cross, but the previous times there were good news that helped lift the cryptocurrency, such as rumors that Amazon would accept bitcoins, although it did not materialize.

But the Federal Reserve’s plans continue to cause cryptocurrencies were viewed with greater pessimism, as an even more risky asset usual. These are difficult times in the sector, but previously other potholes have also been found and surprises that revive it should not be ruled out.