Bitcoin price started a major decline during the early Asian trading hours on Thursday. BTC dived below the USD 45,500 support zone. It is currently (04:40 UTC) down almost 8% and is trading near USD 42,900.
The flagship currency has been in a strong bearish trend in the past few weeks. A closer look at the chart shows that it has formed a head and shoulders pattern. Indeed, it is currently trading at the neckline of this pattern. It has also moved below the 25-day and 50-day moving averages.
Therefore, there is a possibility that the BTC price will keep falling in the near term. If this happens, the next key level to watch will be at $40,000.
When Can Bitcoin Traders Expect BTC Death Cross ?
As the above chart clearly shows the asset is on the verge to encounter yet another Death Cross, somewhere around 10 January 2022. However, currently, the recovery may not be as strong as before as the volume remains below the average. This may be possibly due to the long-time holders and the institutional investors holding the asset tights, remaining un-impacted by the market fluctuations.
With the Bitcoin price jumping either towards the north or south, the volume remains relatively low pointing towards drastic price change the very next moment.
For instance, if the price jumps with low volume, then it indicates sellers just keep calm until and unless buyers uplift the price to certain limits so that they could extract their profits. Same in the case of buyers, they to will not jump in until the asset reached rock-bottom levels.
However, the previous death cross was recovered within a very small time frame. Yet, the upcoming event may squeeze the Bitcoin price(BTC) to a larger extent as the platform could experience a lack of strong hands.