Bitcoin (BTC) fell below $27,000 on October 11, its first real test since the beginning of the month.
Bitcoin price scrambles for support after daily ‘death cross’
Data comes from Cointelegraph Markets Pro and trading view Tracking overnight BTC price weakness, including $26,978 on Bitstamp.
Bitcoin got back to square one in October, erasing all gains from September’s close.
Analyzing the intraday performance, renowned trader Skew pointed to the interaction between two moving averages (MA) and the so-called “death cross”.
In March, he noted that the 100-day moving average broke above the 200-day moving average — a “golden cross” event that traditionally signals an impending move higher.
“Technically, we just have a death cross, so if we move lower, it will eventually tend to squeeze, thus retesting the 200-day EMA before the trend,” part of X (ex-Twitter) comments read.
The daily chart shows that despite BTC/USD’s early “Uptober” rise, the 200-day moving average remains a strong resistance. Since the death cross confirmation on October 9, the pair has lost nearly $1,000, or 3.4%.
On the shorter time frame, Skew highlights $27,300 and $26,800 as key levels.
“With the loss of trend on the 4-hour EMA, the bears have taken control of the price here and will view it as strength if the price recovers above $27.3KI,” he wrote.
“More importantly, any recovery needs to start from here and the possibility of a squeeze cannot be ruled out. Below $26,800, it will look weak to me.”
Bitcoin USD 4 hours
Bears take control of price here, losing 4-hour EMA trendStrength will be seen if the price recovers above $27.3KI
What’s more, in my view, any recovery needs to start from here, with the possibility of a squeeze not being ruled out.
Below $26.8K this looks weak to me pic.twitter.com/HvxZnN4SrI
— Skew Δ (@52kskew) October 11, 2023
Trader Crypto Tony revealed that he had shorted BTC, triggering the change as Bitcoin fell below $27,200.
Bitcoin USD / Dollar – renew
The support area was lost overnight so as per the plan I will short this area below the $27,200 level pic.twitter.com/dorNjbXObD
— CryptoTony (@CryptoTony__) October 11, 2023
Meanwhile, popular trader Jelle agrees that the current $27,000 level will either recover or collapse, noting that “untapped liquidity has been exhausted.”
Part of his latest comments read: “A more immediate buyback would have been expected – a sign that the market wants to go lower” Add to.
Will there be a “macro low” before Bitcoin halving?
Current Bitcoin price action further fuels conservative views on where Bitcoin is likely to go in the coming months.
Related: Bitcoin price could hit $46,000 by 2024 halving – Filbfilb interview
One of those investors holding on to significantly lower levels, including a potential return to $20,000, is popular trader and analyst Rekt Capital.
After considering a potential long-term breakdown from the July highs, Rekt Capital reiterated that the Bitcoin/USD weekly chart lacks macro higher lows so far compared to late 2022.
one accompanying As part of preparations for Bitcoin’s next block subsidy halving event in April 2024, the chart gives a target of around $20,000.
It shows that if macro lows are hit, Bitcoin will replicate the behavior of the year before the last cycle halving (2019).
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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