FOMC Meeting on Horizon, Will Bitcoin Form New Lows in September as Bearish Death Cross Haunts the Rally
Bitcoin price appears to be poised to hold above the crucial support zone between $18,800 & $18,200. As Coinpedia reported earlier, the BTC price continues to trade along the neckline of the lower support, intending to rebound finely in the coming days. However, the latest trade-set up flashes huge bearish signals as the price is expected to slice through these levels and register new lows very soon.
The 200-week MA is considered one of the important levels and the BTC price has been constantly failing to regain above these levels. Moreover, the unusual death cross is expected to occur in the next couple of days which could slash the price harder.
As seen in the chart, the BTC price has not tested the 200-WMA more frequently in the recent past. The test happened only a few times in history while the price was busy marking the bottoms of the bearish cycle. On the previous occasions when the price contacted the 200-WMA levels, it bounced off firmly and surged with magnificent numbers.
However, it is slightly diverse now as the asset has markers nearly 10-weekly candles below the crucial 200-WMA levels. Therefore, the probability of a rebound diminishes as the asset is preparing for a massive downswing.
The Bitcoin price is witnessing the first ever Death cross led by a cross of 20-WMA & 200-WMA levels. The 20-WMA levels have crossed the 200-WMA and heading towards the south. While the drop is not yet confirmed, a bearish close for the current week may validate the formation.
Since its inception, the 20-WMA levels traded close to the 200-WMA but never cross the levels. However, if the Bitcoin(BTC) price registers a rebound then the bearish formation may be invalidated. On the darker side, a huge plunge may be expected if the formation is validated which may drag the price below $15000 or even test the levels below $10,000 too.Source