Some analysts fear that Bitcoin may soon retest $30,000.
A “death cross” has now formed in Bitcoin — with the cryptocurrency’s 50-day moving average falling below the 200-day moving average.
Such a technical indicator often sounds alarm bells among traders, as it can indicate that further losses lie ahead.
Some analysts fear that Bitcoin may soon retest $30,000, and this may bring the $20,000 range back into play for the first time since the start of 2021.
Overall, Bitcoin has practically handed back all of the gains seen so far this year.
As gloomy as a death cross may sound, it may not mean it’s game over for Bitcoin just yet. A similar pattern formed in March 2020 following a brutal flash crash, but the cryptocurrency went on to mount an impressive recovery in the weeks and months that followed.
The latest Bitcoin Fear and Greed Index is flashing a score of 10 out of 100 — indicating “Extreme Fear.”
Such low readings are exceedingly rare, and have only been seen a handful of times since the index first launched.