Ethereum for its part, which performs similarly, loses 2.3% to $2,860 on March 18 lows. The top ten cryptocurrencies in the market collapse up to 6% led by Dogecoin. For its part, Terra falls almost 5%, and Cardano falls 3.5%.
Bitcoin (BTC) is facing a rare chart phenomenon that has historically led to price drops of 50%, new data shows. In a tweet on April 25, the popular Nunya Bizniz account noted a new warning sign of two key moving averages in the BTC/USD pair.
For the third time in its history, the 20 and 50 week moving averages of bitcoin have started to slope down. While that may seem harmless at first glance, the result of the first two events – in late 2014 and late 2018 – was that the BTC/USD pair lost more than 50%.
They both occurred at similar points in Bitcoin’s halving cycles, and although it was slightly early, it is now almost as long since the 2018 crash, which bottomed out at $3,100.”I think this chart draws parallels valid,” macro investor Tuur Demeester commented on the findings.
“If bitcoin couldn’t capitulate this time and hold above $35,000, that would be an incredibly bullish sign. However, my base case, given how weak global markets look, is a slide to the downside and 3-6 months of price recovery.”
As Cointelegraph reported, a consensus continues to form on a prolonged period of price weakness for bitcoin, which should come in line with a correction in strongly correlated global stock markets. The strength of the US dollar in the face of the Federal Reserve’s anti-inflationary maneuvers is also in the spotlight as a precautionary warning signal for those who forecast a shock event after two years of liquidity printing.
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Source: Ambito
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