Bitcoin price prediction: BTC needs to break out of a big death cross

Bitcoin price prediction for January 12, 2022, states that the world's biggest cryptocurrency is at a very critical stage
Bitcoin price prediction for January 12, 2022, states that the world's biggest cryptocurrency is at a very critical stage

Bitcoin price prediction for January 12, 2022, states that the world’s biggest cryptocurrency is at a very critical stage. In this article, we will discuss the possibility of a death cross. 

As per data from CoinMarketCap, BTC started January 12 at $42.7K and reached a daily high of $42.9K. The token hasn’t been able to recapture $43K and is currently trading at $42.5K. The trading volume dipped by 20.35%, while the market cap once again broke the $800 billion mark. 

Bitcoin price prediction on the daily chart

Bitcoin price prediction on the daily chart is not very optimistic. The token is more than 38% shy of its all-time high, courtesy of the huge sell-off that started in mid-November as the take-profit sentiment peaked. 

As seen in the chart below, the 50-day Moving Average is very close to the 200-day Moving Average. This is a very crucial point for Bitcoin and is being talked about throughout the crypto Twitter. 

If the 50-day MA breaks below the 200-day MA, we will witness a ‘Death Cross’ for the world’s biggest token. Death Cross is a bearish indicator of prices and might lead to a drastic price fall for BTC.

Bitcoin price prediction
Source: TradingView

The Bitcoin price prediction via the MACD indicator shows that the MACD line (blue) is aiming to cross the signal line (orange) due to the 2% rise in the price of the token on January 11, as covered in our Bitcoin price analysis for January 11, 2022. If this is successful, we will see a bullish divergence on the daily chart, which might prevent the Death Cross.

Bitcoin price prediction
Source: TradingView

Conclusion

The Bitcoin Death Cross is a much-feared event where a smaller MA (50 in this case) aims to cross below a larger MA (200 in this case). It is an indication of a sell-off for an asset, and trades must be made carefully. BTC needs to break above $45K and aim to reclaim the $53K area of support.

As per our previous report, Ray Dalio, a billionaire, suggests that investors should need to invest 1-2% of their wealth in Bitcoin after Bitcoin went to 3-month lows due to the Kazakhstan internet blackout reported by TheCoinRise.

Must Read Crypto Price Analysis and Predictions January 11, 2022

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