Technical indicators may offer insights for market players that need hope as the crypto market sees extended chaos. This article evaluated three crucial indicators and what they reveal about Bitcoin’s near-term price.
Bitcoin and the crypto space have experienced bearishness this year. Indeed, the industry has struggled this year as players like 3AC, Terra, and FTX collapsed because of unsustainable and stable risk models. Moreover, a deteriorated global economic case saw most investors avoiding risk assets.
Bitcoin has lost 65% YTD. The leading crypto has plunged by 75% since hitting its ATH in early November last year. Meanwhile, the recent BTC blow that triggered multi-month declines emerged after the leading CEX FTX and its associated ecosystem of trading companies, venture capitalist, and lenders collapsed.
Besides macro cryptocurrency news, market players assess technical indicators. News, volume, and price patterns determine market mood and psychology. Alongside BTC’s bearish fundamental outlook, multiple technical indicators suggest a continued depression period for the crypto.
A death cross chart setup often shows the shift from a bullish to a bearish market. The pattern forms when the asset’s near-term MA crosses the longer-term MA from above. Meanwhile, a death cross suggests an incoming longer-term bearish market.
Bitcoin exhibits two notable death crosses. The 7d MA crosses from beyond to under 30d, and the 50d MA crosses from beyond to beneath the 200d. That means Bitcoin remained within a longer-term bear market.
This technical chart formation signals imminent lower prices. The pattern comprises a green candle, highlighting positive price actions, followed by a massive red candlestick, indicating a negative price outlook.
The larger candlestick absorbs and engulfs the smaller one, implying that sellers overpowered buyers while pushing the alt lower at a higher pace than the previous upside’s push.
A bearish pennant is a continuation setup representing a long-term downtrend pause, offering traders a shorting opportunity. The pattern emerges after a swift price decline, and the asset’s price moves sideways, printing higher lows and lower highs before another dip.
BTC price has formed two massive bearish pennants this year (January & May), comprising lower stiffening sideways movement of higher lows and lower highs. The two bearish pennants mean BTC price could be dipping into another sideways phase and forming another bearish pattern.