EXPLAINER
If you think this is just another volatile week for cryptocurrencies, Bitcoin has just entered a selling trend that observers call the ‘death cross'.
Bitcoin, the leader of the cryptocurrency pack, may have suffered a death blow to its quest for credibility. The cryptocurrency saw massive selling as its price fell by more than 10 percent.
The initial trigger was China further cracking down on Bitcoin mining and economic activity. But what’s more alarming is a dangerous phenomenon that is in the offing for bitcoin investors - the death cross.
What’s death cross?
The crypto-market leader’s value is down by 20 percent in less than a week. From its all-time high of $65,000 in April, it is now less than half that price.
Now, the black weekend has forced Bitcoin to trigger a technical sell signal, indicating more downside ahead.
As per experts, Bitcoin has experienced a death cross. This technical phenomenon occurs when the the 50-day moving average of a crypto stock falls below the 200-day average which predicts long-term movement.
Technical analysts and traders hold the signal vital. After Bitcoin suffered the death cross on Saturday, it lost 14 percent in value by Monday morning.
From $35,484.70 on Saturday, Bitcoin closed 31,608.10 on Monday.
Now, with the cryptocurrency sliding below the $30,000 mark and China’s crackdown worsening, analysts expect a more downward movement on the horizon.
Bitcoin to shed more value in the days ahead
The Chinese government is coming down hard on Bitcoin miners. The Sichuan province, China’s second largest crypto mining region, ordered 26 of the biggest miners to suspend their operations.
Chinese officials have also reiterated the ban on crypto service offerings to banks and fintech companies.
China's state media outlet reported that the country is set to shutdown over 90 percent of its bitcoin mining operations from Monday. While data on mining capacity by countries is scarce, China’s bitcoin miners accounted for around 65 percent of the global production in 2020.
What Bitcoin is experiencing in China could trigger similar confrontations in other countries.
Furthermore, the loss in mining capacity could not have come at a worse time for Bitcoin. Environmental concens and high energy usage has already made finding new locations for factories hard for Bitcoin miners.
What’s ahead for those with money in Bitcoin?
All next-big-asset investment bubbles are bound to burst eventually. It happened with dotcom as well as real estate.
Bitcoin’s history suggests significant slide in near future. If the price drops below $30,000, investor sentiment will be massively hit. That could potentially trigger another week of frantic selling.
If you think the low price on offer currently is a good time to invest in the cryptocurrency, experts advise caution.
For those sitting on Bitcoin assets, it is the time to be patient. Despite all the meltdown of 2021, Bitcoin has still put on 10 percent value this year. It has grown more than 200 percent in the last year, mirroring the 2017 rise to global prominence.
Nevertheless, with the death cross triggered and its fight for acceptance at tipping point, its make or break time for Bitcoin.
Virat Kohli turns 36: IPL franchises send heartwarming birthday wishes to legendary India cricketer
Meet Sanjay Verma, the new DGP of Maharashtra who replaced Rashmi Shukla
Anushka Sharma shares FIRST photo of Akaay, Vamika to celebrate Virat Kohli’s birthday
CAT 2024 admit card to be out today at iimcat.ac.in; know release time, steps to download
Vikas Divyakirti UPSC Tips: Check strategy to crack IAS exam, aspirants should study for...
Video of Pakistani man putting hand into chained tiger's mouth goes viral, social media reacts
Shalini Passi reveals her husband's connection to Shah Rukh Khan's wife Gauri Khan, they were..
SC upholds validity of UP madrassa law, says it does not violate principle of secularism
US Presidential Elections 2024: What time do the polls close; when will the results be known?
Elon Musk shares controversial post on X amid US election results, video goes viral
Mukesh Ambani's company earned Rs 15393 crore last week, his net worth now stands at...
Chhath Puja 2024: Know about Kharna, Sandhya Arghya, Usha Arghya, date, timings and puja vidhi
Virat Kohli Birthday: Legendary batter turns 36, here's a look at his incredible milestones
When Ratan Tata met his first true love after 50 years, went for dinner together, know who she was
Samantha Ruth Prabhu hits back at trolls who body-shamed her: 'If you guys...'
Two fall prey to Narayana Murthy and Mukesh Ambani's deepfake videos, lose Rs 80 lakh: Report
North Korea fires multiple ballistic missiles toward sea ahead of US election
Deepika Padukone romances Hrithik Roshan in Bikini, looks sizzling hot in UNSEEN viral video
Chhath Puja 2024: Top 50 wishes, What'sApp messages, quotes to share with your loved ones
Meet Caroline Emmons, Ratan Tata's 'first love' with whom he couldn't marry due to...
Who is Rohan Jaitley, frontrunner to replace Jay Shah as BCCI secretary?
World’s most expensive human tooth is valued over Rs 3000000, it belonged to…
Viral video: Little girl’s adorable dance to Lisa Haydon’s 'Manali Trance' impresses internet, watch
SC to deliver its verdict on pleas against Allahabad HC order scrapping UP madrasa law today
DNA TV Show: Why Election Commission changed Assembly by-elections' dates
Days after imposing fine on Anil Ambani, Sebi now issues Rs 130 crore demand notices to...
Thailand announces indefinite visa-free entry for Indian travellers
Meet daughter of billionaire, who studied in UK, now works in Rs 32770 crore Indian company as...
MUDA case: Lokayukta police summon Karnataka CM Siddaramaiah for questioning on...
This city is 4000 years old, belongs to bronze age where 500 people lived, it is located in...
Kamala Harris has been the President of US before? Here's when and how
Meet son-in-law of billionaire whose net worth is Rs 38690 crore, he co-founded...
What is elimination inflammation diet that helped Vidya Balan lose weight?
Shah Rukh Khan feels breathless after quitting smoking: Know withdrawal symptoms, how to manage them
Zomato CEO Deepinder Goyal takes action on vendor for mislabelling mushrooms at Hyperpure warehouse
Mukesh Ambani's Reliance shares fell by 3%, loses Rs 50205 crore in one day due to...
IAF's MiG-29 crashes near Agra in Uttar Pradesh, pilot ejects safely, court of inquiry ordered
Driving Growth and Monetization at Zendesk: A Conversation with Darshit Thakkar
Can air pollution make you fat? Know how high AQI impact your health
Locanto Addresses Challenges and Innovations in Indian Education System
Nita Ambani stuns in floral co-ord set while Anant, Mukesh Ambani go casual in Dubai
Indian Railway to launch this 'SUPER APP', passengers can now..., know details here
Who is Rashmi Shukla, IPS officer whom EC removed as Maharashtra DGP?
This village in India allows men to have two wives, living under one roof due to…
AUS vs PAK, 1st ODI: Australia beat Pakistan by 2 wickets to take 1-0 lead in series
Singham Again’s sole aim is to entertain, it’s not Hindutva propaganda
Delhi pollution: 'Why firecracker ban was not implemented during Diwali,' SC asks police, govt
IPL 2025 mega auction likely to be held in Riyadh on these dates
Big update on Reliance Jio IPO as Mukesh Ambani eyes THIS date
EC reschedules UP, Punjab, Kerala bypolls from Nov 13 to...
Coldplay's Chris Martin falls through stage trap door while performing live in Australia