After the sharp decline in Bitcoin, analysts drew attention to this level!
The post After the sharp decline in Bitcoin, analysts drew attention to this level! appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) is approaching a technical event known as a “death cross,” a signal that often raises significant concern among investors despite its historically unreliable predictive power. This event occurs when an asset’s 50-day simple moving average (SMA) falls below its 200-day SMA and is typically interpreted as a bearish signal. Currently, Bitcoin’s 50-day SMA is at $62,332 and it is on a downward trajectory, potentially breaking below the 200-day SMA at $61,605. This crossover indicates that short-term momentum is lagging behind the long-term trend, a development that could trigger increased anxiety among traders and investors. The mortality intercept, widely covered in the financial media, is considered a lagging indicator with limited predictive accuracy. It reflects past price movements rather than predicting future movements. Historically, death crosses have often led to overreactions, especially in volatile markets such as cryptocurrencies. Related News: The Well-Known Analyst Shared What to Expect Next in the Bitcoin and Cryptocurrency Market: “Volatility May Increase” Looking ahead, Bitcoin’s short-term outlook is likely to be influenced more by broader economic factors such as US economic data and volatility in the Japanese yen. Continuing demand for the yen may put pressure on risky assets such as Bitcoin, keeping the market under pressure. In summary, although the impending death cross makes headlines and creates fear, its historical performance suggests that it should not be relied upon as a definitive indicator of future price movements. Investors must consider a number of factors and maintain a balanced perspective amid market fluctuations. *This is not investment advice. Continue Reading: After the sharp decline in Bitcoin, analysts drew attention to this level! Source: https://en.bitcoinsistemi.com/after-the-sharp-decline-in-bitcoin-analysts-drew-attention-to-this-level/
Filed under: News - @ August 7, 2024 7:10 am