Bitcoin (BTC) was flat at the Wall Street open on Feb. 6 as analysis showed “interesting dynamics” at play on BTC price charts.
Bitcoin: the golden cross meets the death cross
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it ignored the start of US stock trading to hold near $22,800.
The pair had seen sudden volatility at the weekly close, abandoning levels closer to its six-month highs above $24,000.
Therefore, Bitcoin worried market participants at the start of the week, with an increasing number expecting a potential retest of $20,000 or below.
For on-chain monitoring resource material indicators, attention now turned to two classic chart features: a “golden cross” on daily time frames and a “cross of death” on weekly time frames.
Representing the interaction between the 50-day and 200-day moving averages, the golden and death crosses traditionally indicate upcoming bullish and bearish moves, respectively.
Such is their notoriety that automated trading tools can buy or sell as needed should one or both events occur.
“By the time it happens, a golden cross on the Bitcoin D chart could trigger some buying. Similarly, a pending Death Cross on the W chart will trigger some algotrading bots to sell”, Material Indicators wrote in a tweet of the day.
He also highlighted upcoming comments from Jerome Powell, Chairman of the US Federal Reserve. Due February 7, the inflation policy signals present in Powell’s words could easily move markets.
Continuing on the chart crossovers, Material Indicators co-founder Keith Alan described them as an “interesting evolving dynamic.”
“Bitcoin is heading for an eminent Golden Cross on the D chart, which is bullish in the short term and could trigger some TA algorithm buying. We are also headed for a death cross on the W chart, which is bearish in the longer term,” he said. fixed in his own tweet.
The rebound from the strength of the dollar is “bad news” for cryptocurrencies
In the macro, US stocks were slightly lower at the open, with the S&P 500 and Nasdaq Composite Index shedding 0.8% and 1.1%, respectively. Asian stocks had also ended the day lower.
Related: Is BTC Price About to Retest $20K? 5 things to know about Bitcoin this week
Meanwhile, the US dollar index (DXY) continued its rally in a move that threatens to put further pressure on risk assets.
The index was trading above 103.6 at the time of writing, its highest level since Jan. 9, as analysts began to fear for the health of the crypto rally.
“It looks like the dollar is trying to recapture its yearly uptrend,” said popular trader and analyst Roman summarized.
“This is bad news for cryptocurrencies and stocks because it will signal a reversal/continuation of the bear market. This week is very important. A trend recovery, $SPX loses 4100 and I am back to bearish macro.”
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