Bitcoin: Charts raise fears of another fall after a quiet weekend

Investing.com – For once, volatility has been fairly low over the weekend, with the cryptocurrency hovering trending around the $43,000 threshold.

However, the lack of further losses, encouraging in itself, should not obscure the fact that Bitcoin’s chart backdrop is powerfully bearish, especially in daily data.

We can indeed clearly identify a descending trend line visible since the historical record for the month of November 2021. However, only a return above $45,000 would allow us to attest to the crossing of this trend line.

Note, however, that this would in no way be enough to give the Bitcoin daily chart a positive bias. Indeed, we can only speak of a bullish return from the BTC/USD trend on the daily chart in the event of a return above $50-52,000, based on the current chart context.

It should also be recalled that the 50-day moving average crossed below the 200-day moving average last week, which constitutes a powerful bearish signal called a death cross.

Knowing that bitcoin has not posted any new significant losses since the validation of this signal, caution remains in order in the face of the possibility of more concrete consequences of this signal this week.

If BTC/USD resumes its decline, the first major support to watch will be the $40,000 area.

Finally, it should be noted to finish that if Bitcoin and most other major cryptocurrencies have shown a mixed evolution in recent days, after an increase of more than 20% over the weekend.

Responsibility: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.