When it comes to Bitcoin price action in the first half of the week it’s all about the Golden Cross, Death Cross and the Federal Reserve.
Bitcoin
BTC
tick down
$22,347
Wall Street was flat at the open on February 6 as analysis showed “interesting dynamics” in the BTC price chart.
Bitcoin: Golden Cross Meets Death’s Cross
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it ignored the opening of US equity trading to settle at $22,800.
As the week ended, the pair faced sharp volatility, nearing a six-month high above $24,000.
Bitcoin worried market participants earlier in the week, with a growing number of them eyeing a retracement to $20,000 or below.
For on-chain resource monitoring of material indicators, attention is now focused on two classic chart features: the “Golden Cross” on daily periods and the “Death Cross” on weekly periods.
Marking the connection between the 50- and 200-day moving averages, golden crosses and death crosses traditionally indicate upcoming bullish and bearish moves, respectively.
Their infamy is that automated trading tools can buy or sell on demand if one or two events occur.
“At this time, the golden cross on the Bitcoin D chart will trigger some buying. Likewise, the pending death cross on the W-chart will lead to some algo trading bots selling,” Material Indicators tweeted on the same day.
He also mentioned the upcoming remarks of US Federal Reserve Chairman Jerome Powell. On February 7, Powell’s remarks on inflationary policy are expected to weigh on markets.
Continuing to talk about chart crossovers, Keith Allen, co-founder of Material Indicators, described them as “interesting growth dynamics.”
“Bitcoin is heading towards a major golden cross on the D chart, which is short-term bullish and will trigger buying in some TA algorithms. We are heading towards a death cross on the W chart, which is bearish in the long term,” he tweeted.
Dollar strength recovery is bad news for cryptocurrencies
In the macro market, US stocks fell slightly at the open, with the S&P 500 and Nasdaq Composite indexes losing 0.8% and 1.1%, respectively. Asian stocks also ended lower.
RELATED: Is BTC Price Going To Retest $20k? 5 Things to Know About Bitcoin This Week
Meanwhile, the US Dollar Index (DXY) continued to rally, threatening further pressure on riskier assets.
At the time of writing, the index was trading above 103.6, its highest level since January 9, as analysts began to fear for the health of the crypto rally.
“It looks like the dollar is trying to recapture its annual high,” summarized Roman, a prominent trader and analyst.
“This is bad news for cryptocurrencies and stocks as it could mean a pullback/continuation of the bear market. This week is critical. Trend rebound, $SPX misses 4100, I’m back to bearish macros.”
