Bitcoin is about to close out the year, maintaining the downtrend that accompanied it for much of 2022, but could it get any worse or are we going to get our breath in the days to come? Some analysts are betting on the possibility that things could get even worse as Bitcoin approaches the dreaded “Death Cross”🇧🇷
According to an analysis by CoinDesk, Bitcoin is approaching a major chart point, with the 50-week simple moving average falling rapidly and heading for a crossover below the 200-week simple moving average.
Since the cryptocurrency hit its all-time high of $69,000 in November last year, the trend has certainly reversed and optimism has given way to selling pressure, with the bears dominates the market and the price plummets by about 70%.
Aside from the steady decline, this was the most relentless downtrend we’ve seen yet due to its strength and steadfastness, crushing key support levels and reaching the point of hitting the 200-day moving average.
According to analysts, the death cross is a strong sign that the downward trend will intensify and the asset price has not yet bottomed out. However, this is not a unanimous analysis.
Can Bitcoin’s Past Predict Its Future?
The graphic analysis of different markets is based on analyzing what happened in the past and determining the correlation with the present and future, trying to see repetitions.
But this technique is not a certainty, in fact it is foolish for many to try to guess the future by looking exclusively at the past.
CoinDesk itself claimed that the death cross has given false signals in the past and prevented some investors from investing during a cryptocurrency bottom.
With the crypto market proving to be full of news and unpredictability, analyzing the asset’s past doesn’t seem like a very effective way to try to guess the future.
Perhaps it’s more interesting to look at the fundamentals, such as the movement of whales and general investor sentiment in relation to what’s happening across the industry. Lately, whales have started to accumulate more and we are gradually seeing other signs of a possible recovery.
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Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
