Have we reached the end of the big bull run of 2020/2021? Analysts use market data to try to understand what's going on.
The expression “bull run” means bull run.
Therefore, it indicates an unbridled price rise in a particular asset.
Bitcoin experienced a major bull run between March 2020 and the first months of 2021.
The asset value was quoted at US$ 64,000.
However, Bitcoin currently dropped to $33.750 on June 20, 2021.
Thus, analysts' fears about weak support levels proved to be well-founded.
Thus, the recent bull run appears to have given way to a more significant correction.
Market data showed the BTC/USD pair rapidly dropping below $34.000 on Sunday.
The fact took place after the asset showed an unstable behavior at the beginning of the weekend.
This Tuesday, at the time of writing the article, Bitcoi is quoted at US$ 30.912,00
So the bull run looks really threatened in the near future.
Some traders predict a drop to the $20.000 region.
Binance's order book data confirmed that selling pressure is strong.
The conversation among many has mainly revolved around the so-called “cross of death” on the BTC/USD daily and hourly chart, which took place last Friday.
It refers to the crossing of the 50-day moving average over the 200-day moving average and is traditionally considered an indicator for price stability.
However, historically, not every cross of death results in a fall, some are followed by phases of a rise.
“A cross of death is overrated,” summed up popular trader Crypto Ed earlier this week.
Death cross is overrated.
The only thing it's telling you, is that you are very late when opening shorts.
Most of the down moves already happen before the cross.— Crypto_Ed_NL (@Crypto_Ed_NL) June 19, 2021
“The only thing this is telling you is that you are too late opening your shorts. Most of the descent movements already take place before the cross.”
In another comment, Adam Back, CEO of Blockstream, questioned Twitter users about the negative distortion given to cross-death events.
(read rest of thread) seems like historically #bitcoin "death-cross" is an inverted indicator, where typically price went up. oops. and "life-cross" dumped. double oops. too much TA and short-term momentum trading. buy, hold, repeat. https://t.co/3Ve1CIjJDq
- Adam Back (@adam3us) June 19, 2021
Bitcoin has dropped about 14% in the last 3 days.
Closeouts were piling up on the exchanges, with nearly $150 million in short positions in just an hour after a sudden drop of about $800 in price.
Another version of the downward price direction involves an impending “unlock” phase at institutional giant Grayscale.
In other words, the next few weeks will see a large amount of investor funds released after a 6-month restriction period.
Thus, there is the potential for sales pressure
Thereafter, in contrast, there should be a reduction in potential seller-side activity after the summer, if these releases actually push prices down from the historical highs of mid-April.
Meanwhile, a look at the fundamentals of the network gave additional cause for concern.
The call hash rate it fell below 100 exa-hashes per second (EH/s), having previously peaked at 168 EH/s.
Other estimates, although not exact, also represented the downward trend in the hash rate.
For a guide on how to take advantage of the recent fall and buy Bitcoin, click on the link!
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