According to analysts, Bitcoin may face a new wave of selling as graphical indicators point to potential downside risks in the cryptocurrency market.
According to analysts, despite the recent short-term recovery, a “death cross” between the 50-day and 200-day moving averages is seen as a bearish signal.
“The 50-day and 200-day moving averages, two very popular moving averages, have drawn the so-called ‘death cross’ line, which does not add optimism to the crypto market in the medium term,” YouHodler Risk Manager Sergei Gorev said.
While the Bitcoin market charts could be pointing to a potential recovery following the recent price drop, Gorev emphasized that a new wave of cryptocurrency selling could be on the horizon. This technical formation often precedes further declines, adding to the uncertainty surrounding the market’s recovery, Gorev said.
A “death cross” occurs when a short-term moving average crosses below a long-term moving average and typically signals a transition from bullish to bearish momentum.
*This is not investment advice.
