Bitcoin Price Holding Above $9k

 Bitcoin needs to break a crucial price barrier to beat the impending death cross

Bitcoin needs to break a crucial price barrier to beat the impending death cross

Bitcoin reached it's lowest price of the month last week, bottoming out at around $7,300, yet has made a recovery above $9k, potentially signaling a bullish run. However, Bitcoin is still trending downwards from its highs achieved in mid-December and then from early January. The concern at this time is that Bitcoin's 50-day moving average will intersect (dropping below) the 200-day average creating, the appropriately ominous sounding "death cross". Often, when this occurs, it can signal increased sell-off, further plummeting the value, but this may not be the case this here. As Coindesk.com reported 

it is worth noting that long-term moving average crossovers are not very reliable indicators, as a major chunk of the sell-off has already run its course by the time the crossover actually occurs. Hence, a death cross tends to work as a contrary indicator in the short-run.

Looking at the chart below, you can see that in December, when Bitcoin value was at its apex, the relative strength index (RSI) was off the charts, well above 75. This number indicates that it was overvalued or overbought, whereas an RSI below 30 tends to indicate it being undervalued and oversold. Currently Bitcoin is below 50, , but above 30. The RSI returning to 30 or below could indicate a bull run for Bitcoin. 

 https://www.coindesk.com/bitcoin-returns-above-9k-but-death-cross-still-a-risk/

https://www.coindesk.com/bitcoin-returns-above-9k-but-death-cross-still-a-risk/

The next major price resistance will arrive at around $9,500, during this low volume pullback, so a break above this before the quickly approaching downward intersection between 200-day and 50-day moving average will be crucial.

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