The most-dominant asset has continued to slide downwards over the past couple of months. What’s more, Bitcoin has only braced the inescapable case for its death cross. The crypto fraternity has spoken about its apparently alarming impact on the broader market. In fact, currently, the entire market is widely on shaky grounds, hence another bear cycle looks imminent.
Bitcoin Price To Plunge Below $35k?
Bitcoin price has been under bearish reign over the past couple of weeks with the generation of consecutive higher lows. However, the current downward move turned out to be the longest streak of bear cycles since 2018. In addition, the slow downside move of the cryptocurrency is inclined with the May-August bear cycle. Hence, we may get to see a bull cycle of late by March or April.
The purchasing interest around the world’s most dominant cryptocurrency appears to be abated ahead of its death cross. The flagship asset has plummeted below 100 hour SMA, underneath $43k. Crypto analysts believe that $40k would remain at risk of a further downward move if it continues to trade below $43k.
One-day chart from the trading view cites that 50 days MA is on the verge to traverse below 200 days MA, threatening a death cross. It is most likely to happen by tomorrow, where the price is expected to plummet below $40k. If bulls neglect $37k price ranges, then bears might haunt the price rally below $35k.
Institutional Investors To Become Gamechangers!
Total Bitcoin acquisitions by large institutional investors have risen by 28.3% from 2020 to 2021. Whilst interest rate hikes by the US Fed are likely to hit the financial markets in the next couple of months. The institutional investors might hoard and use BTC to hedge inflation in the coming days.
Microstrategy, governments of El Salvador and Ukraine, Grayscale, and many others are the biggest institutional players over the past year. Notably, Microstrategy and Grayscale together hold a total of 3.73% of the total BTC supply.
Collectively, to commence with a bull cycle, the flagship asset needs to cross the barriers of death cross and resistance test. If correction below $40k delays then the bull market is expected to commence from March or April. As there are huge expectations of institutional investments in 2022, this would drastically catalyze the Bitcoin price action.
Source: https://coinpedia.org/bitcoin/death-cross-to-haunt-the-btc-usd-under-37k/