Bitcoin Faces Stark Plunge to $27,000, Testing Key Support Levels Amid 'Death Cross'
Summary:
Bitcoin falls to $27,000 for the first time since October's beginning, wiping out the month's early gains. Noted trader Skew points out interactions between moving averages, including a "death cross". The 200-day MA remains a stiff resistance, leading to Bitcoin losing almost $1,000 since the death cross confirmation. Trading analysts expect key support levels at $27,300 and $26,800, with any recovery likely spot-driven. If a macro low is hit, Bitcoin may mirror 2019's pre-halving year behavior. Nevertheless, investments and trading moves carry inherent risk, necessitating thorough research before making decisions.
On October 11th, Bitcoin (BTC) experienced a significant drop, hitting the $27,000 mark, the lowest level since the start of the month. This drop was shown on the BTC/USD 1-hour chart from Cointelegraph Markets Pro and TradingView, which exhibited a strong overnight shift towards a weakened BTC price, even falling as low as $26,978 on Bitstamp.
This sudden shift has essentially nullified all of October's potential gains, returning Bitcoin to its value following the close of September. Looking into daily performance, a notable trader, Skew, pointed out the interactions of two moving averages (MAs). He highlighted a so-called "death cross", which occurred when the 100-day MA crossed above the 200-day MA - a phenomenon referred to as a "golden cross" in March, typically indicating potential profits.
The BTC/USD 1-day chart shows the 200-day MA providing serious resistance despite Bitcoin's early October progress. Since the verification of the "death cross" on October 9th, bitcoin has lost almost $1,000, marking a 3.4% decrease.
On shorter time frames, Skew pointed to $27,300 and $26,800 as critical thresholds where market control is potentially shifting to the "bears." And any rebound is expected to be spot-driven. Fellow trader, Crypto Tony, echoed this sentiment, stating he was short on BTC after the price dipped beneath $27,200.
Trader Jelle expressed a similar sentiment, indicating that the current $27,000 levels would either lead to a recovery or a plunge, and the untapped liquidity has already been utilized.
The current BTC price behavior has reinforced cautious outlooks on Bitcoin's trajectory in the coming months. Among those projecting significantly reduced levels, including a return to the $20,000 mark, was popular trader, Rekt Capital.
According to Rekt Capital, the BTC/USD weekly chart still lacks a macro higher low compared to late-2022. A coinciding chart indicated a potential target of around $20,000 as we approach Bitcoin’s next block subsidy halving event in April 2024.
Should a macro low take place, Bitcoin could mimic the behavior from 2019's pre-halving year in the last cycle. However, this article does not offer investment advice or recommendations. Investments and trading moves come with risk, thus it's highly recommended for readers to undertake thorough research before committing to a decision.
Published At
10/11/2023 8:17:47 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.