Technically speaking, Bitcoin may be in trouble

09 Jun 2021

???? BTC | $33,124 (-1.1, -366%)

???? ETH | $2,485 (-86, -3.3%)

???? XRP | $0.86 (+0.008, +1.0%)

???? LTC | $160 (-1, -0.9%)

Technical analysts are sounding the alarm as Bitcoin is approaching the unambiguously-named ‘Death Cross’ on their charts – where the 50-day moving average looks set to cross below the 200-day moving average. The token is now down over -50% from its April peak, but may have further to dive should the pattern complete.

Bitcoin sentiment was hurt yesterday as part of its narrative – that it is beyond government control, was dented by an FBI seizure of a ransom paid in Bitcoin. Looking long-term however, this may go some way to easing Bitcoin’s mainstream appeal amongst regulators, given that many were against Bitcoin as it seemingly fell outside their ability to curb money laundering and terrorist financing activity.

Exchanges on Monday saw the largest outflow of Bitcoin since Nov 2020. Bitcoin moving off of exchanges has traditionally been a bullish sign for the token, as it is a sign that owners intend to hold it, rather than to sell it. The market however remains relatively directionless, as indicators elsewhere in the market such as demand from Bitcoin whales, has fallen (bearish).