Analysts: Bitcoin's weekly chart shows another death cross; historical data suggests this could trigger a 50%-60% pullback.
TL;DR
Analyst Ali Charts warns Bitcoin's weekly chart shows a death cross, historically leading to 50%-60% price drops. Past examples include declines of 54%-67%, suggesting potential pullback to $50,000-$38,000 range.
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PANews reported on January 2nd that crypto analyst Ali Charts noted a recurring pattern on the Bitcoin weekly chart: the interaction between the 10-week simple moving average and the 50-week simple moving average. Historically, whenever Bitcoin experiences a death cross between these two moving averages, it is followed by a significant pullback. Here are some past examples:
- September 2014: -67%
- June 2018: -54%
- March 2020: -53%
- January 2022: -64%
A similar death cross occurred three weeks ago on December 8th. If history repeats itself, a similar 50%-60% pullback would cause Bitcoin's price to fluctuate between $50,000 and $38,000. Personally, I think this range is starting to become interesting from a long-term spot accumulation perspective.