The current trends for the bitcoin’s value are suggesting that the cryptocurrency might be about to reach what is known as the Death Cross. This is a crossover that occurs when the long-term moving average goes above the short-term moving average. This suggests that a downward trend is about the start, thus causing the value of the investment to decline. The move comes as the bitcoin has been struggling to try and get out from its ongoing decline and has been trading at a steady value for the most part in the last few weeks.
An analysis from Coindesk reveals that the bitcoin’s 50 and 200-day moving averages are about to converge with one another. The 50-day average is going to go under the longer one, thus suggesting that the declines in the bitcoin’s value have been very significant and are expected to become worse after a while.
Current Value
The bitcoin is currently trading at under $8,000 in value. The currency has been experiencing a dramatic decline in its value over time. The two moving averages associated with the currency are extremely dramatic.
Around the early part of February when the 50-day moving average started, the currency was close to the same total at around $8,000 to $9,000. This marked a period of slight control over time.
But the 200-day moving average paints another picture. That long-term trend includes the significant increases in the currency’s value as it became a hit among investors in the later part of last year. The long-term average shows that the currency went up to around $20,000 in value at one point.
The Death Cross illustrates that the bitcoin has been going through a significant decline over the past few months. Meanwhile, the moving average has been relatively under control. The currency has been moving down in value and is struggling to try and move back up in value. Much of this could be chalked up to regular restrictions on how the bitcoin and other cryptocurrencies can be used, but there is also a threat of regulations from governments coming along that is influencing its value and causing it to go down.
Understanding the Death Cross
The Death Cross is a problem that suggests that a downward trend is going to move forward. As the long-term average becomes higher in value than the short-term one, the long-term total will be the new resistance level. This level will start to decline over time as the currency continues to drop in value.
The downward trend is also accompanied by a higher trading volume. This added volume confirms that the value of the currency will only keep on going down after a while even as the trading stays active.
The potential increase in trading volume could make it harder for the bitcoin to try and move up in value. There is a possibility that the bitcoin might start to drop in value while other cryptocurrencies may experience near-identical declines in their values as a result of what is happening on the market with the bitcoin.
Nothing can be predicted…things has its own ups and downs
Unstable….
Vlad, what is your opinion on bitcoin ?
Nothing is permanent according to me, it can change anytime