The past month has been heavily bearish on Bitcoin and cryptos in general. Weekly charts so far have not been exactly great, but that has proven to be a contrary indicator in the past. The good news is that some experts have spotted certain indicators that have spelled good things for Bitcoin in the past. It’s the 10-week simple moving average (SMA) that is set to drop below the 50-week moving average, resulting in a bearish crossover.
This should put an end to Bitcoin’s drop that has been going on since before the New Year. The previous such bearish cross occurred in May 2020 and was caused by the coronavirus pandemic. In the months that followed, Bitcoin picked up steam and set record highs in December.
Incoming Price Jump?
While many have lost faith after Bitcoin’s sub-50K drop, experts are calling for calm. Crypto’s volatility never promises anything, but if previous trends are to be followed, we’re in for an exciting jump ahead. The bearish crossover should help get the price up. Moving averages are based on backward-looking data. They can be used to present oversold and overbought conditions and can also show potential for price bouncebacks and market corrections.
Of course, technical studies alone are not reliable as precise indicators. Expert traders and investors prefer chart-based signals with money flow that cover a variety of fundamentals. At the moment, there’s low probability of a significant price bounce, even if we’re all waiting on it. Previous bearish crossovers have always resulted in price bounces, and we’re hoping that the same happens soon.
It’s clear that the crypto market needs a boost, and Bitcoin should lead the way. If the moving averages confirm a bearish crossover, it might be more than enough to set Bitcoin in a new bull season with new heights to be achieved.
Still No Movement on the Market
Last week, we wrote that Bitcoin showed resistance and strength, and things are not very different now. Coins are still dropping while Bitcoin is hanging to the $41-42K range by a lifeline. Things have not been so great on the market in the past month or so, but brighter times await us ahead.
The market is in extreme fear right now, with investors hesitant to put their money in Bitcoin. Many small-time investors have already abandoned the market, selling what they had remaining in their wallets. This is against the advice of experts who suggest sticking with your guns at the moment. These times will pass. A year ago, no one believed Bitcoin would be relatively stable over the $40K threshold, yet here we are
This should be the year of crypto after the legendary spells Bitcoin enjoyed in 2021. Sure, it dropped below the expected level in December, but things should pick up soon. We’ve seen similar developments in the past, and if the bearish crossover is true, we’re in for a full-blooded bull price bounce soon. Here’s hoping it comes sooner rather than later.