Bear Cross on Key Indicator Could Push Bitcoin Price to $7,300

Publié le by Cointele | Publié le

The news of Bakkt Bitcoin futures trading volume increasing by 796% failed to positively impact Bitcoin price and Fidelity Investments' announcement that it has launched crypto custodial services also did little for the market.

The general sentiment amongst Bitcoin traders seems relatively unenthusiastic and many traders view Bitcoin's current price action as an opportunity for accumulation at $7,800 and below.

As Bitcoin's price gradually sinks lower, traders appear to have turned their appetites elsewhere.

As shown by the daily chart, Bitcoin price is approaching the double bottom at $7,775 and $7,714.

The pattern of lower highs could eventually give way to lower lows as was demonstrated in September when Bitcoin's price was in the low $9,000s.

One will also notice that the 200-day moving average has flattened and Bitcoin price continues to peel away from the indicator which many traders describe as being crucial.

A drop below $7,300 could drop Bitcoin as low as $6,720 which aligns with the 111-day moving average and a high volume node on the VPVR. The weekly Stoch RSI still shows a bull cross which is a slightly encouraging sign.

Some traders have pointed to the bullish divergence currently seen on the daily moving average convergence divergence as a sign of positive price action for Bitcoin but the MACD is also on the verge of dropping below the signal line.

Lately, not much has changed with Bitcoin's market structure and the price seems to be ranging.

As mentioned earlier, Bitcoin bulls need to push the price to $8,450 and then knock out last week's high at $8,835 to flip the short-term trend bullish.

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