Bitcoin is about to witness a very rare event on its price chart as the 50-week moving average has converged with the 200-week MA.
The 50-week SMA looks set to break below the 200-week SMA for the first time in the next day or two, confirming a bearish death cross.
Bitcoin has never seen a death cross on a weekly chart before, so the emergence of a death cross looks worrisome. However, some analysts believe that death crosses usually occur after most of the selling pressure may have already occurred.
BTC/USD weekly chart. Source: TradingView
A death cross is the opposite of a golden cross and can signal a long-term bearish market. This is understandable, as 2022 is going to be a tough year for cryptocurrencies, as evidenced by the sharp drop in prices. Bitcoin is down nearly 67% from its November 2022 all-time high of nearly $69,000.
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Bitcoin’s daily chart recently showed its first golden cross in months. However, recent market events seem to be gradually overshadowing the bullish outlook.
Bitcoin came under pressure again after falling to a four-week low of $22,408 on Thursday morning before recovering to around $22,735 by press time.
The U.S. Securities and Exchange Commission (SEC) is investigating leading cryptocurrency exchange Kraken for alleged violations of securities laws, which contributed to today’s market drop.
Investors also focused on some comments from Federal Reserve officials this week, offering fresh perspective on the outlook for the U.S. economy and monetary policy.
On Wednesday, Federal Reserve Governor Christopher Waller said interest rates could rise more than investors expected.
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According to USA Today
