Two moving averages warn of a bear market-style price floor in the making, says analysis one month after Bitcoin's weekly chart "death cross."
Bitcoin (BTC) is facing a rare chart phenomenon which has historically resulted in 50% price drawdowns, new data shows.In a tweet on April 25, popular account Nunya Bizniz noted a fresh warning sign from two key moving averages on BTC/USD.Analyst: BTC could spend 6 months recovering from dipFor only the third time in its history, Bitcoin’s 20-week and 50-week moving averages (WMAs) have both started to slope downwards.While that may look harmless at glance, the result of the first two events — in late 2014 and late 2018 — was BTC/USD losing over 50%.BTC weekly:On 3 occasions the slope of both the 20 & 50ma turned negative.The first 2 lead to 50%+ corrections.This time? pic.twitter.com/eIMsQ6dk8H— Nunya Bizniz (@Pladizow) April 25, 2022
Both came at similar points in Bitcoin’s four-year halving cycles, and while slightly ahead of time, it has now been nearly as long since the 2018 dip, this bottoming out at $3,100.“I think this chart draws valid parallels,” longtime commentator and macro investor Tuur Demeester commented on the findings. “