The crypto space is showcasing an extreme volatility offlet with the major tokens switch to passive mode. The price movement especially after the mid-may crash appears to be very much uncertain. The bitcoin price also follows a similar trend as a notable dump follows each time it surges.
The BTC price slipped below the 50-day MA in the previous trading day and by initiating a recovery since the early trading hours, the price is on the verge to cross these levels soon. But if the 200-day MA is considered, then the price is much above these levels. In an interesting event, both these trend lines are expected to cross each other which may result in a ‘death cross’.
Moreover, the death cross which is a technical chart pattern indicates the potential for a major sell-off. One of the popular analysts, Lark Davis predicts the Bitcoin death cross may occur this weekend.
The analyst also asked his followers to not get panicked and fall into the trap of the bears. The recent slump, a couple of days before had also signalled for a death cross, yet the notable jump diminished the possibilities. However, the price still remained below $40,000 which haunts the bull rally with the death cross.
This Is When Bitcoin Price May Recover
The Bitcoin price after a notable dump of close to $38,000 regained the lost momentum to propel towards the north. However, the price did jump above $39,000 but appears to have failed to surpass $40,000 levels. And also initiated with a fresh pullback which may drag the price below $39,000 too.
Despite the prevailing bearish trend, yet the rally could gain bullish momentum and bounce back if the weekly close is on the bullish note. A popular on-chain analysis platform Rekt Capital, says that the weekly close above $38,200 for the BTC price may help to set a sustainable uptrend.
On the whole, the Bitcoin price could have a bearish weekend ahead with a huge sell-off on the cards. Conversely, the BTC price may also regain the lost positions on recording successful retracement during the weekly close.