Bitcoin Barrels Become a "Death Cross" as the Chartist Backdrop Darkens

The last time Bitcoin hit a death-cross was in November 2019, when it was down roughly 5% a month later.
Bitcoin medals use peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network.

During Bitcoin's recent decline, chart watchers saw a worrying technical breach: the cryptocurrency is approaching a negative pattern known as a death cross.

The price of the world's most popular digital currency has plummeted, with the 50-day moving average approaching the 200-day average. If the short-term line crossed below the long-term one, the coin would assume the forbidding configuration. The sign is typically regarded as a closely observed technical indicator that may signal that more sorrow is on the way.

The last time Bitcoin hit a death-cross was in November 2019, when it was down roughly 5% a month later.

While the collision hasn't yet occurred, Mati Greenspan, the originator of Quantum Economics, believes it is unavoidable at this time. A death cross might imply that prices will likely stay low for a long period.

Bitcoin has been on the downturn for many weeks, having lost over half of its value since setting a record high in mid-April. The recent selloff was exacerbated by entrepreneur Elon Musk's outspoken criticism of the token's energy use. Increased Chinese regulatory oversight also tainted the mood.

Experts cited a technical malfunction as well as the recovery of Colonial Pipeline Co.'s ransom as proof that bitcoin isn't immune to government regulation on Tuesday. The US has recovered virtually all of the Bitcoin ransom paid to the perpetrators of last month's cyberattack on Colonial, illustrating that law enforcement can hunt down online criminals even when they operate outside of the country's borders.

Meanwhile, chartists are keeping an eye on the $30,000 barrier, which the cryptocurrency came dangerously close to hitting during a recent selloff. They believe that breaching that round-number level will be possible given the lack of technical assistance between $20,000 and $30,000.