Bitcoin does not perform well once this key BTC price moving average crossover occurs, Decentrader’s FilbFilb shows.
Bitcoin (BTC) may have more to lose if one BTC price chart pattern plays out as usual, warns veteran analyst Filbfilb.
In his latest update on X (formerly Twitter) on Jan. 19, the founder of trading suite Decentrader sounded the alarm over Bitcoin’s descent to monthly lows.
Bitcoin’s 3-day chart suggests start of downside
BTC/USD 1-hour chart. Source: TradingView
While subsequently rebounding above $41,000, market strength is convincing few traders and analysts in the short term.
Filbfilb is among them, with 3-day timeframes of particular concern.
Uploading a comparative chart, he showed that when the 3-day chart crosses below the daily 50-period simple moving average (DMA), further downside tends to result. The chart extended to Bitcoin’s current all-time high of $69,000 seen in November 2021.
“3 Day red with a break below 50 DMA. There are a few examples of this happening in the past,” he commented.
BTC/USD 3-day chart with 50-day SMA. Source: Filbfilb/TradingView
Previously, Filbfilb successfully estimated Bitcoin topping out at $48,000 around the announcement of the United States spot Bitcoin exchange-traded funds (ETFs). A similar BTC price target is in place for April’s block subsidy halving.
Bitcoin traders stay cautious
The overnight dip meanwhile sent BTC/USD below its 2024 opening price.
Analyzing liquidity conditions, financial commentator Tedtalksmacro flagged $40,000 as the next crucial level to hold.
BTC bids thickening up now after that dump and offers have lightened considerably, 44k seller is still there though…
— ted (@tedtalksmacro) January 18, 2024
As Cointelegraph reported, various market participants view the mid-$30,000 range as a potential bounce zone to come.
“I think we need 1 more (smaller) leg down before we can bounce. Last nights bounce not convincing me…,” popular trader Crypto Ed, creator of trading group CryptoTA, wrote on the day, preceding in-depth analysis.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.