Bloomberg: Bitcoin Death Cross Is Staring Down Bulls After a Painful Retreat
Bitcoin, the most popular means to send and receive funds within online gambling restrictive markets, has seen its price tumble in recent weeks.
The price of Bitcoin was up nearly 2% Tuesday late morning in the US to $42,486.90.
Bloomberg warned of crypto being mired in a drawdown as the Fed readies a stimulus withdrawal and the IMF issued its latest warning on crypto risk to financial markets.
From Bloomberg:
After one of roughest patches ever for Bitcoin enthusiasts, holders of the largest digital currency are facing an ominous technical price pattern with a name that suggests more pain ahead.
Known as a death cross, the measure shows up whenever an asset’s average price over the last 50 days drops below that of its 200-day moving average, an indication that its momentum is headed downward. And though it hasn’t occurred yet for Bitcoin, it looks to be on course to hit it later this week, according to Mati Greenspan, founder of Quantum Economics.
The latest dropoff among digital assets comes as policy makers look to commence a series of rate hikes as soon as March.
That indicator is supposed to be bearish but Bitcoin’s track record around death-cross formations remains murky, according to Bloomberg.
Then there's perhaps an even bigger concern that the International Monetary Fund has warned of parallels between cryptocurrency price moves and the stock market posing a risk to financial markets.
From Bloomberg News:
Analysts have long noted that Bitcoin -- and, therefore, other cryptocurrencies -- tend to move in tandem with stocks. Lately, that relationship has strengthened. Both have been volatile recently amid signs that the Federal Reserve was comfortable withdrawing stimulus at a faster pace than previously anticipated.