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:
Here is how the Bitcoin’s chart looks like