Investors Need Bitcoin Optimizer As Bitcoin Prices Form a Death Cross

Investors Need Bitcoin Optimizer As Bitcoin Prices Form a Death Cross.

14 September 2023

Investors need a Bitcoin optimizer for real as Bitcoin and other cryptocurrencies climbed Thursday. The price outlook was dismal as the most prominent digital asset formed a so-called death cross, a technical indication that might indicate selling pressure ahead.

Bitcoin’s price has increased 1% in the last 24 hours to just under $26,300, continuing to recover from a selloff of under $25,000 earlier this week, the lowest level since mid-June. The largest cryptocurrency is still hovering above the $26,000 level, which has offered support for much of the last month during an unusually quiet time for digital asset trading, with volumes and volatility plunging to multi-year lows.

According to Alex Kuptsikevich, an analyst at broker FxPro, Bitcoin may easily reach $26,400. The concern is whether this will exacerbate the selloff. A death cross has formed on the daily timeframe, indicating that more traders concentrating on long-term technical analysis will be trying to sell on the upswing.

Indeed, while cryptos have increased in recent days alongside the broader stock market, with the Dow Jones Industrial Average and S&P 500 also rising, the market backdrop for digital assets has darkened as Bitcoin remains at low levels. A death cross has formed for the first time since January 2022, which is a bad portent from a technical standpoint. Bitcoin prices began 2022 at $47,000 before plummeting more than 65% to its bottom in November.

A death cross is a closely watched technical indicator for a Bitcoin optimizer that often suggests a prevailing price downtrend or at least a slide in sentiment toward bearishness. It marks when the 50-day moving average for prices falls below the 200-day moving average.

According to Antoni Trenchev, founder and managing partner of crypto lender Nexo, there have been nine Bitcoin death crosses since 2011, and it’s practically a coin flip whether Bitcoin will be lower three, six, or twelve months after the indication flashes. It often implies a negative shift in momentum and supports what many are thinking: Bitcoin is in for a long haul in the coming months.

Beyond Bitcoin, Ether, the second-largest cryptocurrency, increased 1.5% to $1,620. Cardano and Polygon, two smaller cryptocurrencies, traded close below flat. Dogecoin advanced less than 1%, while Shiba Inu fell less than 1% in Memes Coins.

< Back