Bitcoin price analysis for Jan 14, 2022, brings cold news. The world’s biggest cryptocurrency experienced a Death Cross which was lurking for a few days. Does this mean we are in a bearish trend now? Let’s dive deeper.
The data from CoinMarketCap shows that the market cap of BTC fell by 2.16% while the trading volume is up by 13.48%. It seems that the investors are taking profit gained in the last two days after a bullish price movement towards $43K, as TheCoinRise reported.
On the other hand, BTC opened the day at $42.5K and went to a daily low of $42.3K after a high at $42.7K. The current price of Bitcoin stands at $42.5K. Many investors are relating this Bitcoin price slump to El Salvador’s loss after President Nayib Bukele’s buying spree.
Bitcoin price analysis on the daily chart
The daily chart of Bitcoin shows a mixed scenario for Bitcoin as indicators seem to be at a critical point. The MACD indicator represents the MACD line (blue) and signal line (orange) overlapping with each other. It seems that the signal line is gaining the upper hand and bearish divergence is possible.
The Accumulation/Distribution line shows that despite BTC holdings being at highs, a small sell-off period has indeed occurred.
The 50-day MA is likely to break below the 200-day MA, which is called a Death Cross. Currently, in the chart below, we can see both the lines touching, and if 50-day MA goes down, a bearish scenario for BTC might set in.
Despite the prediction of $75K by Seba Bank CEO, it seems that according to our Bitcoin price analysis, the world’s biggest cryptocurrency is succumbing to the bears. If this movement continues, investors can witness BTC drop below $40K.