Bitcoin News: According to Bitcoin technical analysis, the digital currency’s 100-day simple moving average (SMA) is about to break below the 200-day SMA for the first time since May last year. This indicates that potentially price drops are imminent.
Critical transition in Bitcoin chart coming soon
Bitcoin prices appeared relatively unconcerned in the afternoon trading as technical analysts began to worry that the cryptocurrency price could approach a bearish turning point.
Referring to the graphical analysis of long-term moving price averages, Coindesk reports that Bitcoin’s 100-day simple moving average (SMA) is about to break below the 200-day SMA for the first time since May last year.
The transition comes weeks after Bitcoin’s 50- and 200-day SMAs passed the “death cross”, another potential indicator of negative price movements.
However, the digital currency still manages to stay above the key $30,000 threshold, which means it’s still positive for the year.
While chart analysis suggests that Bitcoin may be heading for another downtrend, some predict the opposite.
Marcus Sotiriou, a sales trader at digital asset broker GlobalBlock, said on Monday that technical data shows a “big move” is coming in Bitcoin price that could potentially break the current price range between $29,000 and $42,000.
Sotiriou said that there are some indications that this big move will be “to the upside” and emphasized that “if there is an increase in volume and some positive price action in the next few days, this could give Bitcoin a chance to retest.
The trader also said that Bitcoin has emerged from a downtrend in the daily relative strength index (RSI), which he says is “in an uptrend while the price is in a downtrend.”
“Bear momentum is dying,” Sotiriou said.
Bitcoin is down 1.2% in the last 24 hours to $33,458.