Bitcoin: Golden cross meets death cross
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it ignored early trading in United States stocks to stay near $22,800.
The pair experienced rapid volatility at the weekly close, leaving levels closer to six-month highs above $24,000.
Bitcoin therefore worried market participants at the start of the week, with a growing number eyeing a potential retest of $20,000 or lower.
For material resource indicators to track on the chain, attention is now focused on two classic chart features: the “golden cross” on daily time frames and the “death cross” on weekly time frames.
Representing the interrelationship between the 50- and 200-day moving averages, the golden and death crosses traditionally mark upcoming bullish and bearish moves, respectively.
They are so notorious that automated trading tools can buy or sell as needed if one or both events occur.
“The moment it happens, the Gold Cross on the Bitcoin D chart could trigger buying. Likewise, the pending death cross on the W chart will prompt some algotrading bots to sell,” Material Indicators wrote in a tweet that day.
He also highlighted upcoming comments from Jerome Powell, chairman of the US Federal Reserve. By February 7, the inflation policy cues present in Powell’s words could easily move markets.
Continuing with the crosses on the chart, Material Indicators co-founder Keith Alan described them as “an interesting dynamic development.”
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“Bitcoin has moved towards the eminent Golden Cross on the D chart which is short-term bullish and could prompt some TA algos to buy. We are also heading towards a death cross on the W chart which is bearish in the long term,” he said in his own tweet.
BTC/USD labeled charts with gold and death crosses marked. Source: Keith Alan/Twitter
Dollar recovery is “bad news” for crypto
On the macro front, U.S. stocks opened slightly lower, with the S&P 500 and Nasdaq Composite losing 0.8% and 1.1%, respectively. Asian stocks also ended the day lower.
Related: Will BTC Price Retest $20K? 5 things to know about Bitcoin this week
Meanwhile, the US dollar index (DXY) continued its recovery in a move that threatens to put further pressure on risk assets.
At the time of writing, the index hovered above 103.6, the highest since January 9, as analysts began to fear for the health of the crypto rally.
“The dollar seems to be trying to regain its annual uptrend,” summed up popular trader and analyst Roman.
