Bitcoin prices were looking relatively listless in late afternoon trading as technical analysts began to worry that the price of the cryptocurrency could be approaching a bearish turning point.
Citing chart analysis of the long-term moving price averages, Coindesk reported that Bitcoin’s 100-day simple moving average (SMA) is about to cross below the 200-day SMA for the first time since May last year, a so-called ‘bearish crossover’ that supposedly indicates price declines ahead.
The crossover also comes weeks after Bitcoin’s 50 and 200-day SMAs passed the so-called ‘death cross’, another potential indicator of negative price movements.
However, the digital currency is still managing to stay above the key threshold of US$30,000, which means it is still positive for the year.
There could be upside ahead
While the charting analysis may suggest Bitcoin could be headed for another downward trend, some are predicting the opposite.
Marcus Sotiriou, sales trader at digital asset broker GlobalBlock, said on Monday that technical data suggested a “big move” in the Bitcoin price was coming which could potentially break its current price range of between US$29,000-US$42,000.
Sotiriou said there were some indicators that this big move “will be to the upside”, highlighting that if there is “a pick-up in volume and some positive price action in the next few days, this could give Bitcoin a good chance of retesting the range high at US$42,000”.
The trader also said Bitcoin is breaking out of a downtrend on the daily relative strength index (RSI), which he said was “trending up whilst price is trending down”.
“Bearish momentum is dying out”, Sotiriou said.
In late afternoon trading in London on Monday, Bitcoin was down 1.2% in the last 24 hours at US$33,458.