As seen on the TradingView chart, Bitcoin is nearing the completion of its death cross. The price of BTC is currently hovering at $42,631 after dropping to a low of $42,325 on January 13th.
Crypto analyst Lark Davis has previously indicated that there have been eight death crosses in BTC history, four of which marked a bottom, and four of which preceded sell-offs ranging from 30% to 65%.
The last time Bitcoin drew a death cross was in June 2021, days before it hit a low of $28,800. Bitcoin eventually gained momentum the following month and ended with the seal of the golden cross in mid-September. The golden cross is the opposite of the death cross, which means that the MA 50 rises above the MA 200.
BTC/USD daily chart, source: TradingView
Moving average crossovers cannot be used as standalone indicators because they are based on historical data and are therefore lagging indicators. The market is often oversold and should be back by the time of confirmation, as it was in June 2021 and late March 2020.
At the same time, Guido Buehler, CEO of Swiss Bank SEBA, said that internal valuation models predict that Bitcoin will hit $75,000 in 2022. The CEO of SEBA bank said that institutional investors will help boost the price of BTC in 2022.
Positive news for Bitcoin
At the beginning of the year, the President of El Salvador made bold predictions for Bitcoin in 2022, predicting a significant price increase and a “huge surprise” for the leading asset.
President Bukele predicted that the price of Bitcoin will more than double in the next 12 months, reaching $100,000. He also predicted that two more countries would follow El Salvador’s lead and accept BTC as legal tender.
Just 14 days into 2022, there are signs that Tonga, a Polynesian nation in the Pacific Islands, could become the second country to adopt a leading crypto asset, following the example of El Salvador. In a series of tweets, Lord Fusitua, a former Tongan MP, released a five-point plan to make Bitcoin legal tender in Tonga.
According to the ex-people’s deputy, this could happen as early as November. Lord Fusitua also states that the Tongan Legal Tender Bill will be patterned after and almost the same as El Salvador’s bill.
Posted by Newt Salamander, Analyst at Freedman Сlub Crypto News
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