This “Death Cross” Suggests Bitcoin Could See Immense Turbulence

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Bitcoin’s recent break below $19,000 was a grim technical development, as it is what led the cryptocurrency to decline as low as $17,600 before it was able to find some strong support.

Whether or not this support will hold strong in the mid-term should depend largely, if not entirely, on the cryptocurrency’s reaction to $18,000. It is rapidly moving to test this level, but it may face a rejection here.

One analyst is now noting that the cryptocurrency’s cloud formation is also beginning to post what is referred to as a “death cross.” This could mean downside is inbound.

Bitcoin Tries to Reclaim $18,000 as Bulls Show Signs of Life

Ever since Bitcoin first broke below $19,000, it has been slowly inching lower as buyers struggle to take control of its price action.

At the time of writing, the cryptocurrency is trading down just under 2% at its current price of $17,980. This is around the price it has been trading throughout the past 12 hours.

Whether it can gain a firm and lasting foothold above $18,000 should provide some serious insights into where it will trend next.

BTC’s Cloud Formation is Beginning to Form a “Death Cross”

One sign of turbulence in the near-term is a forming death cross on the cryptocurrency’s cloud formation.

This has led one analyst to claim that some immense volatility could be imminent in the days and weeks ahead.

“Expecting a little bit of turbulence. The cloud is slowly starting a death cross, something that we didn’t see since 10,000$ area. My plan is to: – Not short ( can’t be asked to monitor ) – Slowly add on supports,” he said.

Image Courtesy of Teddy. Source: BTCUSD on TradingView.

The coming days should provide some insight into this technical pattern’s implications for where Bitcoin trends heading into the end of the year.

Featured image from Unsplash.
Charts from TradingView.
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