Bitcoin Technical Analysis

Bitcoin technical analysis and price forecast

Technical analysis of Bitcoin chart looks “interesting”. If it is in any way correlating with traditional analysis methods, the outlook is cloudy with chance of drops.

50-day average dropped nearly to the 200 day moving average in 9 months. Shall it go below (which did not happen since 2015) will clearly indicate weakness, that is among technical traders is called “death cross“.

A death cross is a crossover resulting from a security’s long-term moving average breaking above its short-term moving average or support level. It is so named due to the shape created when charting the activity and its association with a downward market trend. As long-term indicators carry more weight, this trend indicates a bear market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new resistance level in the rising market.

A typical example:

Death Cross
Death Cross

 

Here is how the Bitcoin’s chart looks like

Bitcoin Technical Analysis

Bitcoin Technical Analysis
Bitcoin Technical Analysis
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