Bitcoin approaches the Death Cross pattern after massive slumps in recent months
After a couple of disastrous weeks, Bitcoin is now on the verge of witnessing a threatening price pattern known as the Death Cross. Now, the currency is under massive dump as the 50-day Moving Average is dropping below the 200-day Moving Average. In fact, last Monday, the BTC price dipped below $40,000 for the first time since September 2021.
The inflation in the BTC price also affects Binance Coin, Ethereum, and Solana
Although this slump directly affects BTC investors, the price of other cryptocurrencies like Binance Coin (BNB), Ethereum (ETH), and Solana are also under threat.
In October 2021, the price of Bitcoin reached an all-time high (ATH) record of $68,500, when the first spot-based Bitcoin ETF appeared in the New York Stock Exchange (NYSE). Subsequently, the value of digital tokens has undergone a constant fall, depicting the longest losing strips since August 2019.
Despite the price having recovered from the Monday dip, the Death Cross seems imminent.
Bitcoin’s recently dipped below $40,000, although it has quickly recovered its position
Many experts say that if this Death Cross indeed manifests, investors could panic-sell and bring a sell-off season. Whenever a sell-off season occurred, BTC value would abruptly go down to record lows. In fact, on May 30, 2021, the BTC price moved down from $36,500 to $28,000 within 24 days. Additionally, in March 2020, Bitcoin’s value declined from $8,000 to $4,000 in a single day.
As the Federal Reserve takes stringent actions on inflation, Bitcoin has come up with even more trouble. It has lost nearly 40% in the few months after reaching an outstanding rally in October.
Meanwhile, the International Monetary Fund has come up with a new warning regarding the stock market. The financial authority also added that the fragile cryptocurrency price movement could result in risks to various financial markets.
