Bitcoin (BTC) has struggled to steady beyond $30,000 despite several attempts to overcome the levels. While publishing this blog, Bitcoin traded at $29,434.32, following a brief 0.09% uptick within the past 24 hours.
The leading crypto has a market cap of $560 billion. Furthermore, bears appear to control the crypto’s price actions.
As the weak price actions dominate, BTC might be in for a massive retracement, and history repeating itself will mean the asset plummeting towards levels below $15K. Rekt Capital Newsletter’s author revealed the previous death cross and the BTC retracements that flowed.
So, what is a death cross? Death Cross emergence whenever the 50 Exponential Moving Average crosses below the 20EMA on the technical chart. The previous decade had Bitcoin experiencing a few death cross cycles in varying years.
The author pointed out past instances when Bitcoin dipped into a steeper retracement following a death cross. For example, BTC lost 70% in 2013 after the death cross and 65% in 2017. Also, the 2019 death cross saw Bitcoin losing 55%.
BTC Death Cross This Year
Rekt Capital expert trusts that Bitcoin will likely witness trends recorded in 2013, 2017, and 2019. Remember, Bitcoin has dropped over 37% since the year started. Moreover, the world’s largest crypto seems unprepared to reverse the current trend soon.
Bitcoin traded nearly 43% down since November last year before touching the death cross. Another 43% downswings after the death cross will take BTC towards $22.7K.
- A 5% downswing from the Jan. 2022 death cross will translate to $18K lows for Bitcoin.
- Another 65% drop would trigger losses to $13.8K.
- A 71% downward move would place Bitcoin prices at $11.5K. These lows would mean losing over 80% since November last year’s high.
The analyst added that the fascinating thing with the 43% after-Death Cross plunge would see Bitcoin hitting $22K. Rekt Capital trusts this will offer a lucrative buying opportunity for Bitcoin traders with a high ROI.
What are your thoughts about Bitcoin and its death cross declines? Should we prepare for the same? Feel free to comment in the section below.
