Bitcoin is on the brink of a major correction to yearly lows following the third daily death cross since 2014.
A death cross is where the 50 exponential moving average (EMA) crosses the 200 EMA to the downside, which is indicative of the first phase of a bear market.
The two previous crosses, which occurred in 2014 and 2018, both resulted in 60% moves to the downside.
Following the obliteration of the $7,900 and $7,400 levels of support last week, Bitcoin is hovering around $6,750 as it attempts to force a period of stability before the impending crash.
A lack of retail interest coupled with intense pressure from the sell side has undoubtedly caused the recent dive in the price of Bitcoin, which is now down by more than 35% in the past month.
The next logical stopping point for Bitcoin over the coming days and weeks will be the $5,900 level of support that held for the majority of the 2018 bear market.
However, a rally to test the confluence of the death cross may also be on the cards, although Bitcoin would need to propel itself back above $8,000, which at the moment seems unlikely.
Bitcoin is not suffering alone either, with several of the top cryptocurrencies also falling by more than 10% in a matter of days.
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