Bitcoin is Now “Death Cross”Fear of Breaking $30,000
China has recently implemented a series of policies to put pressure on cryptocurrencies, causing market panic to sell Bitcoin, causing Bitcoin to continue to fall. It has fallen by 40% in the past 2 months. Its 50-day moving average fell below its 200-day moving average last weekend. , Showing a “death cross”, many analysts are worried that they may not be able to hold the support price of about 30,000 yuan on May 19 this year, which means that they may face more painful markets in the future.
China recently convened officials from major banks to participate in a meeting and reiterated the prohibition on the provision of cryptocurrency services. This news further exacerbated the panic selling of Bitcoin. According to foreign media reports, Jeffrey Kleintop, Chief Global Investment Strategist of Charles Schwab, pointed out that China’s crackdown has indeed had a great impact on Bitcoin. Although it is still uncertain whether it will change the long-term trend, it will definitely cause a period of volatility. In addition, some analysts pointed out that in fact, the “death cross” is not the most terrifying phenomenon. There was a death cross in March last year, but it continued to rise sharply in the following two months, forming a golden cross. Therefore, it is warned that if the 200-day moving average starts to decline, special attention is needed.
Bitcoin has fallen by more than 50% in the past 6 trading days. Compared with the historical high of nearly 65,000 US dollars in April, it has fallen by nearly half. Most investors believe that the reason for such a large decline in Bitcoin is attributed to the Chinese authorities. Policies such as rectification and blockade of Bitcoin have been frequently offered, resulting in low liquidity in the virtual currency market and affecting price fluctuations. According to Coindesk’s quotation, before the deadline, Bitcoin was quoted at $32,640, down 5.4% within 24 hours.