- Short term: Bearish
- Medium to long term: Strongly Bearish
Most Bitcoin traders faced a rough week. Amidst uncertainty and rising fear in Financial markets worldwide, the BTC has struggled to keep up with the price it featured initially in the week. It is currently at a phase that analysts call the Bearish consolidation phase.
Here are the five indicators that point towards plunging BTCUSD prices:
- Bear Flag formation: A significant drop in prices followed by a small rise and entering a consolidation phase, thereby forming a Bearish Flag. Now according to the Bearish flag, the BTC could drop all the way to $3,450.
- Death Cross: Death cross occurs when the 50 DMA moves below the 200 DMA, and this happened to the Bitcoin on March 26. Another Bearish indicator for the long term.
- Moving average acting as resistance: The 200 DMA starts acting as a resistance level after forming the Death Cross. The Bitcoin faces strong resistance at $6,900. Breaking this resistance seems unlikely considering the current massive sell-off.
- Fibonacci retracement levels: The Fibonacci 0.5 or 50% Bearish resistance level lies at $6,542. BTCUSD is currently hovering at around $6,540, and this resistance level could be crucial.
- World economy entering a global recession: The IMF announced on Friday that the world economy is entering a global recession. Dow Futures are down more than 3%. And Bitcoin is connected not only to the US but the global economy as well. Investors fleeing safe assets such as Gold is evidence enough that people are worried about losing their capital.