Bitcoin Flashes ‘Dangerous’ Macro Fractal – What To Expect For Price
Bitcoin’s This death cross appeared in early March when the 50 Simple Moving Average (SMA) crossed below the 200 Simple Moving Average (SMA). An equivalent 50/200 SMA death cross appeared in 2022 after Bitcoin was already down 58% from its high, and the cryptocurrency then declined a further 46% before finding a bottom. If the sequence continues to play out as outlined, Bitcoin could be heading to a final capitulation move into the range between $40,000 and $50,000. At the time of writing, Bitcoin is trading at $72,756, up by 1.7% in the past 24 hours. The projected decline is taken directly from the 2022 template: a 34% decline from the current price zone would place the Bitcoin price within that range.Related Reading
However, the outlook is not entirely bearish after that scenario. The same fractal that points to a breakdown also points to what comes next. The capitulation in 2022 led the transition into accumulation that built the foundation for the next bull cycle.
Featured image from Pexels, chart from TradingView
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