Bitcoin price is in a Downtrend? Death of the cross, and CME Cap
In a few days, subject to a massive reversal of the trend upward, Bitcoin (BTC) to see a so-called “death cross”.
For those who are not with the technical analysis. A “death cross” occurs when a short term moving average, often the 50-day average, as it refers to short-term Trends, under a long-term moving average, often the 200-day average, falls. As the Analyst RJ stressed on Twitter, posted the Bitcoin to the three previous death cross on the daily chart in the following months, a declining Trend. The last death cross, which was observed at the beginning of 2018, marked the beginning of a long-term price correction to the low of just over 3,000 US dollars.
$BTC daily 50/200 MA aka “death cross” will occur over the next few days pic.twitter.com/h2SFh6pjpC
— RJ (@RJ_Killmex) October 22, 2019
While the previous death of the cross, in the year 2018 Bitcoin prompted investors to surrender, it is important to note that this technical Signal is not a unique character for themselves. Mid-2015 to early-2016, after Bitcoin had reached a low point and had started in a new long-term bull trend to enter, occurred the death cross also. It was interesting in this case is that BTC is not like more, but actually showed an increase. Regardless, there is evidence that the death cross is not a “Game Over” for BTC.
A popular indicator that is used by crypto-currency traders, has just issued a massive “buy-signal” for Bitcoin. As the analyst Moe Mentum explained, showed the TD (Tom Demark) Sequential, a time-based indicator for signalling of Trends, recently, a massive “Buy 9” for bitcoin weekly Chart. The last Time that BTC saw in July 2018 on its weekly Chart, a “Buy 9”, followed shortly after a two-week increase of 3,000 USD.
CME Futures Cap
In addition, the crypto analyst, The Moon his of 76,000 subscribers has a video on YouTube explaining that Bitcoin has just created a large gap in the Futures contracts of the Chicago Mercantile Exchange (CME) Bitcoin. Unfilled gaps in the CME Futures are regarded by many experts as an indicator of probable price targets. In the past, Bitcoin has filled any gap (“Gap”) of the CME Futures, as The Moon said:
All the gaps are closed, the CME Futures Chart. And until recently, 8.5000 Dollar gap has not been closed. However, it was now filled because of the fact that the BTC price has collapsed. So there is only a gap, the one which, in the case of 11,800 USD. But as I said, we have just created a further – a second gap, which is located under the price. And the gaps among us, we have to note, because this of course could mean that Bitcoin will fall and the gap must close.
I think the best scenario would be if Bitcoin will fall and the gap could close, and maybe we can just go later further to the above, because if Bitcoin actually goes up, it means that we are statistically and historically, no matter how much we go up, down, and the gap must close. It is not guaranteed and it does not have to be, it just means that the graphic says, statistically and historically, that BTC will fall and close the gap.
With a view to previous price action to the next step of Bitcoin to predict, says The Moon, that BTC could rise to the top, and in the short term, 8.600 USD reach.
Featured Image: Wright Studio | Shutterstock
