A death cross can be easily recognised when the 50 point moving average cross below the 200 point moving average. This can signify a further bearish trend and a push to the downside. Bitcoin's 50 MA has already crossed its 100 MA and is edging closer to its 200 MA. However, it has frequently rejected this level as it offers strong support and could be the sign of a bullish divergence.
- Bitcoin price is trending lower still after recently pulling back to a descending trend line on its 1-hour time frame.
- Price is eyeing the next downside targets marked by the Fibonacci extension tool.
- Technical indicators are giving mixed signals, but it looks like bears could still win out.
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This show that a further sell off is more than likely as bears take more control. All moving averages 50,100 and 200 MA are getting closer to the downwards
However, the Stochastics indicator is now pointing upwards which indicates bullish pressure but could reach another further pullback to new lows once it reaches its overbought conditions and big players liquidate their positions for profit.
The next potential support is at the 38.2% extension of $6495 near the swing low. The 50% extension is at $6185.90 and the 61.8% extension is at $5876.60. The full extension is located at $4875.50.
Credit Coindesk- https://www.newsbtc.com/2018/04/05/bitcoin-price-technical-analysis-04-05-2018-next-potential-support-zones/
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