- Bitcoin price dipped below $34,000 for the first time in two weeks.
- Market participants seem worried about a death cross between the 50- and 200-day MA.
- Despite the pessimism, a particular technical indicator suggests its time to buy BTC.
Bitcoin price is down by nearly 19% after rising to a high of $41,400 on June 15. The sell-off has intensified over the last few hours, pushing BTC below $34,000.
Bitcoin price could rebound if this support level holds
On June 17, the Tom DeMark (TD) Sequential indicator presented a sell signal on Bitcoin's daily chart suggesting that a steep correction was underway. A spike in selling pressure behind the flagship cryptocurrency was significant enough to validate the bearish formation.
As Bitcoin price broke below the middle Bollinger band on the daily chart, a downswing to the lower band at $33,400 seemed inevitable. Fears over the death cross between the 50- and 200-day moving average appeared to have added fuel to the bearish trend as some technical analysts believe it is a strong signal for further downward pressure.
BTC/USDt 1-day and 12-hour chart
Now that Bitcoin price has dipped below $34,000, a buy signal has emerged on its 12-hour chart.
The TD Sequential indicator is currently on a red nine candlestick, which is considered a bullish formation. If buy orders begin to pile up around the current price levels, BTC might bounce off the $33,400 support zone towards $37,000.
It is worth noting that Bitcoin price must hold above June 9's low of $32,400 for the bullish outlook to be validated. Failing to do so could ignite another sell-off that pushes BTC to $30,000 or even $25,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.