Bitcoin has currently been struggling between $41k-$42k and could soon crash to $35k as death cross nears. The last time it happened during June, we made a low at $29k before pushing higher. And this time as well, the price could trace below $40k, which is important support. At present, the 50-day EMA is just above the 200-day EMA, and unless a strong volume is seen, the death cross is unavoidable.
Death crosses have never been good for Bitcoin
In March 2020, when the death cross happened, the price of Bitcoin crashed from $9,000 to $4,000, which is more than a 50% drop. In 2021, we did see a death cross, and the price did move down but not drastically. The strong support at $29k was one of the reasons why the price was able to move back up. And this time as well, we might risk testing the $29k-$30k level again.
Till now, the prices have moved back up after good news and monetary policies of the feds, but this time we don’t have anything. The market has largely been silent, and there are hardly any solid adoption news or even FUDs in the space. So, the death cross in 2022 might be different.
What can prevent this?
Bitcoin could crash to $35k and even $30k unless the price holds at $40k. In general, that is obvious, but at $40k, we have the solid support of the 0.382 Fib line. The next support after this is going to be around $35k. The market is not very positive, right not, and there is extreme fear, so we can expect a turnaround. But again, Bitcoin has a way of acting out.
So, at this point, it’s best to just HODL. Buying the dip will be a good option if we see some bounce back and a positive upward movement. Unless that happens, the price is going to crumble, and a good position to enter will be between $30k-$35k. Altcoins will also be on sale if that happens, and it will be a good opportunity.
What are your thoughts as death cross nears and Bitcoin could crash to $35k? And do you think that we should wait to buy the dip? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Trader Peter Brandt advises against buying the Bitcoin dip.
