Bitcoin is now hovering above the $7,450 level of support, which provided a platform for last month’s rally to $10,350.
If it can hold above this level, it could provide a platform for a surge back up to the $8,200 region, although the bulls need a rally above $8,800 to reverse the recent death cross.
The daily death cross has happened just three times since 2014, with both previous crosses in 2014 and 2018 resulting in 60% corrections to the downside.
A correction of that magnitude from here would see Bitcoin plummet to last December’s lows of $3,150, with some analysts like Tone Vays calling for $1,150 price targets.
If pressure from the sell side continues over the coming days, Bitcoin can be expected to retest $6,500 before dwindling down towards the historic level of support at $5,900.
In more positive news, the volume of Bitcoin futures contracts traded on ICE’s Bakkt reached an all-time high yesterday. If this can continue, it could well be the trigger for a reversal in price out of the ongoing bear market.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.