Cryptocurrency analyst Colin Talks Crypto commented on the sharp decline in Bitcoin (BTC) in current days and issued an essential warning that has sparked controversy available in the market.
In accordance with the analyst, the dying cross formation that occurred a couple of days in the past, whereas it has typically signaled a backside and a robust response previously, didn’t have the identical impact this time. This implies that Bitcoin might have already deserted the height at $126,000.
Colin famous that this construction has solely labored equally as soon as earlier than in historical past: January 14, 2022, at the start of the key bear market that started instantly after the 2021 bull market. The dying cross at the moment, as an alternative of bringing new highs, heralded a chronic downtrend. In accordance with the analyst, Bitcoin’s response to the final cross a couple of days in the past is sort of much like that interval.
Colin Talks Crypto famous that this similarity suggests the height within the present cycle might have already been reached, however he did not fully rule out the potential for a medium-term rally. “I anticipate a brief aid rally within the coming months, much like what’s seen in a robust bear market,” he stated. “Nonetheless, that is extra more likely to be a restoration inside a bear development, not a bull run that may yield a brand new all-time excessive.”
For these unfamiliar with the idea of a “dying cross,” Colin defined the technical definition: a 50-day transferring common crossing beneath the 200-day transferring common. Whereas this sample typically indicators a backside and a speedy restoration after a pointy decline, this conduct has now been disrupted in 2022.
*This isn’t funding recommendation.
