The initial sign to monitor is the emergence of a “death cross” involving the 50 and 100 Simple Moving Averages (SMA) on the 12-hour Bitcoin chart. This ominous pattern occurs when the shorter-term moving average, specifically the 50-day SMA, crosses below the longer-term moving average spanning 100 to 200 days. Historically, the death cross has been viewed as a negative signal, indicating a potential shift in market sentiment from optimistic to pessimistic.

Adding to the concern is the occurrence of a red 9 candlestick produced by the TD Sequential indicator. Developed by market specialist Thomas DeMark, the TD Sequential functions as a technical instrument for identifying possible price exhaustion and changes in trends.

In this specific scenario, the presence of the red 9 candlestick suggests that Bitcoin’s upward momentum could be diminishing, potentially paving the way for a corrective movement.

The current Bitcoin value, presently decreased by 16% from its peak, heightens the uncertainty surrounding the domain of cryptocurrency trading. As supporters of digital assets diligently monitor the evolving price trends, all eyes are on whether Bitcoin will yield to the ominous indications of the impending death cross or defy predictions with a bullish resurgence.

This article was originally published on U.Today