Bitcoin price reveals that it wants to build up shorts, to confirm an upward move. But on-chain metrics ascertain that its path does harbor some hindrances. The flagship asset could be headed to local highs above $43k if bulls bypass the death–cross. On the contrary, if downside pressure builds up then it may even plunge underneath $40k.
Bitcoin Price In Jeopardy? Tricky Path Ahead!
The flagship asset has risen above $42k by flipping the falling wedge channel at around $41.34k on the daily chart. The move suggests that BTC price could have more room to slide upwards. However, the slice below $41.340 signifies that the most dominant asset could topple over 12% toward $38k.
Further, BTC’s 50 days MA is sliding to close below 200 days MA. If the cross-over yields to death-cross then we can expect a significant correction. Usually, during such scenarios, the flagship asset undergoes heavy downfall. The asset has incurred a loss of 71%, 65%, and 55% in 2014, 2017, and 2019 respectively. Hence, if something similar recurs then it would plummet below $38k.
Why Bulls Would Bypass Death-Cross?
After prolonged depreciation, the number of transactions on the Bitcoin network has flipped the bottom and risen to 247.5k. The block crypto analytics also confirmed a rise in the number of new addresses on the Bitcoin network. New addresses have spiked from 395k to 406.8k over the past couple of days. Bitcoin Hashrate that usually follows the price action is on the rise which is again a positive sign for BTC price action. Over the past week, there appears to be a spike in accumulation. There is a total of $8.02 billion worth of BTC left exchanges outstripping sellers.
Collectively, the above catalysts have a big role to play in the next couple of days. If the network growth push increase in the number of transaction, active addresses, and more then bulls would bypass death-cross. However, death-cross remains a scenario, if buy orders continue then values claiming above $45k remain intact. On the contrary, the bearish predominance would bottom out the price below $38k.