Bitcoin price analysis: "Death cross" fall or falling wedge support?
- "Death cross" takes shape, extreme bearish signal.
- Falling wedge support holds, breakout extreme bullish.
It couldn't get anymore interesting and anti-climax for the crypto traders - Bitcoin is at an inflection point where it would either break out towards new highs or the price could fall by half even from current levels.
Bitcoin price is down more than 6 percent on Friday as almost all the major cryptocurrencies fall off the cliff to end the week that saw the prices collapse for digital currencies.
But what sets BTC apart at this juncture is the fact that the technicals point two extreme and opposite scenarios for the traders. "Death Cross" - which is 50 days SMA crossing over 200 days SMA on the downside - extremely bearish signal and at times can result in the prices falling by half.
While that's too bearish, bulls would like to hear the argument in their favour and there comes falling wedge - extremely bullish sign for the prices which would result in prices crossing all time highs in a short span of time.
Given the pace at which Bitcoin trades, its only a matter of days, not weeks, before we know which way the tide woud turn. It certainly promises to be a fun ride.
BTC/USD daily chart:
Author
Manoj B Rawal
Independent Analyst
Manoj B Rawal, financial markets professional with about 11 years of experience in writing, editing and advising on stocks, currencies and fixed income.
