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The price of major cryptocurrency Bitcoin (BTC) saw a sudden surge during today's trading session. What is interesting is that today is FOMC day, and the price of Bitcoin saw a sudden surge of optimism that pushed its price up by 1.5%.
As a result, BTC is now trading back at $84,000, right where the 200-day moving average on the daily price chart of the largest cryptocurrency currently stretches.
Gamza KhanzadaevThis mention of the moving average is necessary to outline that the current price point for Bitcoin is very important, as the 200-day MA usually represents a crucial resistance and support level for the asset on any financial market.
Even though Bitcoin has soared, the key is that it has soared right up to an important resistance price point, which in fact currently serves as a ceiling for the major cryptocurrency, preventing it from further growth.
You can see for yourself on the price chart that Bitcoin has tried to break above this curve several times in recent days, and its only success so far has been to print higher lows.
Death cross threat for Bitcoin (BTC)
Adding to the skepticism is an emerging death cross on the daily time frame for the BTC price chart. An ominous pattern is believed to precede a downtrend, and in this case, it is represented by the 23-day moving average crossing its 200-day counterpart from the upside to the downside.
According to textbook technical analysis dogmas, this could mean that Bitcoin is poised for short-to-medium-term losses, and the fact that it is now trying to break through the important price resistance ideally fits into this outlook.
Arman ShirinyanConcluding all of these price chart indications of what the near future holds for Bitcoin, one could say that recent growth is nothing more than a bull trap, and if it is the rule of technical analysis, then BTC is more likely to dump than pump.
Vladislav Sopov
Dan Burgin