Bitcoin [BTC] has been trading in a tight range between $8800 and $8600 for the past couple of days. After massive volatility on both sides, the price is now entering the uncertain phases.
Market sentiments flipped bullish after a massive break-out. However, the sentiments have been questioned again, as Bitcoin broke below $9000.
This phase of consolidation could yield on either side as traders take the stage. Moreover, the support areas and the timelines for a break-out are also closing in.
Tussle between Traders
In the absence of dynamic buying and selling from retail traders. The derivates market largely controls the price. There seems to be aggressive selling since last week. However, the price has continued to hold above support.
BitMEX witnessed strong selling action on 11th November; the price dropped below $8600. However, the buys stepped in large volumes holding the above support level.
On a weekly scale as well, the profile shows an inclination towards the bearish side. Cantering Clark, a derivatives trader, and analyst notes that while the sentiments are primarily bearish, the bulls have been able to hold support. Hence, a reversal in sentiments with the price could be due soon.
Fear of the Impending Death Crosses
Bitcoin had a robust bull run during the first half of 2019. Since then, the price took a bearish turn and has been unable to break above $10,000 successfully.
Currently, the bearish momentum is threatening two probable death crosses that could be lead to further downward movement.
On the daily chart, the 200-Day and the 128-Day moving average are looking to form the death cross. Lately, the moving averages have acted as critical support and resistance levels for BTC. Usually, the 100-Day moving average is taken for reference. However, leading crypto analysts like Willy Woo and Tone Vays prefer the 128-DMA due to its proximity to the price.
On a shorter time frame (4-hour), Sawcruhteez cites that the 200 and 50-period exponential moving averages are also leaning towards a death cross. However, he also said that $8600 would act as strong areas of support.
Furthermore, $8300 and $7700 (previous swing lows) will act as next levels of support in case of a bearish move. The volatility in Bitcoin prices is expected to increase shortly as the death cross comes closer.
Do you think that the death cross could lead to another long bear market or bulls will be able to hold support? Please share your views with us.