The Bitcoin Technical Chart (BTC) will appear on the chart every day.
On December 18, BTC will experience a market-leading mortality rate that occurs when the bars fall in the short to medium and long term. In this case, Bitcoin’s 20-day moving average (20-day EMA) will close the 200-day moving average (200-day EMA).
The index may warn potential traders to sell to traders and investors in the coming sessions, given the history of predicting low trends. For example, the 20 to 200 month crossover, which appeared on May 30, 2021, played a key role in reducing BTC prices from $ 36,500 to $ 28,800 over the next 24 days.
BTC / USD daily price chart showing cross death in May 2021. Source: TradingView
A death toll similar to the March 2020 market crisis erupted a day before Bitcoin prices fell from $ 8,000 to $ 4,000.
Bitcoin has a risk of correction in the $ 40K-42K range
Bitcoin has made steady adjustments in the past four weeks and is poised to close the current weekly session at a loss, especially when the Federal Reserve takes a more aggressive stance on inflation.
In the last 30 days, the price of BTC has fallen by about 17.50%, including a record adjustment of $ 69,000 on November 10th. In doing so, the cryptocurrency fell to $ 42,333 in a short period of time, as shown in the chart below to offset the losses.
However, the investment was not reversed: Bitcoin prices fell after encountering psychological resistance of about $ 50,000.
Bitcoin’s $ 50,000 effort to reverse the declining channel resistance is about $ 50,000, along with another 20-day EMA and a 200-day EMA.
Related: Bitcoin has no “ball” to continue trading in 2022, analysts
As a result, lower resistance in Bitcoin seems to be on the wrong side. As death approaches, the crypto currency continues to have a downward trend in the downstream channel to check the $ 42,000 level for a sharp decline.
If the downward trend accelerates, the next price could be $ 40,000.
The other leg is pushing Bitcoin’s daily relative strength index (RSI) below 30 on the buy signal. For now, the rate index is trying to move above the trend below, predicting that Bitcoin’s local price will fall.
In the shortest graph, the RSI connects the edges, assuming it deviates from the rectangle. At the heart of this optimistic outlook is the fractal September 2021 Mozzi, an independent cryptographic analyst shared.
A four hour BTC / USD chart compares RSI trends for September 2021 and December 2021. Source: TradingView
“Bitcoin has been following a similar pattern since late September,” analysts said Saturday.
“Pay attention to the consolidation of the RSI. As a guarantee, expect open trends from the previous trend.”