– BTC has created a death cross, a level that predicts market doom, according to crypto analysts.
– Some market players blame China’s harsh crackdowns for today’s market crash.
– However, there is something to give BTC hope.
The leading digital coin has faced it rough in the crypto market after hitting its record high in April. For now, BTC seems to extend its losses to the third month. The asset lost more than $2,000 over the last 24 hours to trade near $31,000. Keep in mind that Bitcoin has dropped by around 25% in seven days. What might worry investors is that Bitcoin molded the feared death cross recently. However, as much as this signalizes dooms, some analysts have hope about Bitcoin.
Bitcoin traded above $41,250 last week on Tuesday. That was after the coin staged a recovery, gaining around $10,000. However, it has been losing the gains to trade over $31,000 today, following a 2-week low. At the moment, the favorite digital coin remains down by more than a half since its highest records.
Most crypto analysts blame China for the recent market sell-offs. The nation has doubled its efforts in combating crypto activities. Recently, China banned banks from indulging in crypto endeavors. Also, the country has been launching clampdowns targeting crypto mining.
Jeffrey Kleintop, a financial expert at Charles Schwab, an American Investment firm, commented on China’s BTC restriction. He admitted that the moves by the regulators added volatility in the crypto market.
However, some market players suggest that China is not the only factor behind the recent crypto market crash. For instance, the Coinshares strategist Meltem Demirors said that broader market developments could be initialing the sell-offs. She told Bloomberg that the existing market unpredictability and economic instability scares investors as they avoid risky investment – BTC ranks high as far as volatility is concerned.
BTC Creates the Death Cross
While struggling with recent plummets, BTC formed the death cross. Keep in mind that this market indicator scares many market players as it hints at more drops. The death cross indicates changes in price momentum, often followed by a drastic fall.
However, BTC investors might have some hopes. Bitcoin was on the death cross last year in March after the coin lost 60% in 2 months. However, the asset recovered shortly after, climbing to its highest prices a year later.