Bitcoin dips to $35,400 “death cross” is imminent, and giant whales are still hoarding coins at low levels

Bitcoin, the largest cryptocurrency in terms of market value, has now wiped out all the gains it made in a week.

On Friday, the price of bitcoin fell below support at $36,000 and hit a low of $35,431.15, down nearly $3,000 from its average price in the previous session, terminal data showed. Although the bitcoin price is still up about 23% year-to-date, some traders are still concerned about the looming “death cross” model.

Bitcoin dips to ,400 "death cross" is imminent, and giant whales are still hoarding coins at low levels

A “death cross” in a price chart generally represents a bearish signal and could signal trouble for bitcoin amidst regulatory crackdowns and environmental issues. A death cross occurs when the 50-day moving average is below the 200-day moving average, which can happen over the weekend.

Death crosses in 2018 and 2019 caused bitcoin prices to fall a further 70% and 47%, and the 2020 death cross occurred shortly after the market crash caused by the new crown pandemic in March, which proved to be a lagging technical signal at the time.

Bitcoin dips to ,400 "death cross" is imminent, and giant whales are still hoarding coins at low levels

Nonetheless, some analysts remain bullish on bitcoin’s move.

Mike McGlone, commodities strategist at Bloomberg, wrote in a report on Friday, “When the stock market tide comes back down one day, we expect bitcoin and gold to be the main beneficiaries.”

Jurrien Timmer, head of global macro at Fidelity, also stuck to his bullish “double bottom” thesis.

Timmer notes that bitcoin-related stocks are trending higher, which could be an upcoming move for bitcoin: “Bitcoin still needs to trade/stay above $41,000 to confirm the ‘failed 5th’ and double bottom thesis, but with bitcoin-sensitive stocks trending moving higher, this suggests the bullish thesis still looks good. The underlying market usually sends important signals at tops and bottoms.”

Bitcoin dips to ,400 "death cross" is imminent, and giant whales are still hoarding coins at low levels

But Timmer also warned that if Bitcoin fails to stay above $41,000, that will give the shorts the edge and the price will plummet to $23,076.

Data from Santiment, an on-chain analytics platform, shows that while bitcoin has fallen back to the levels it was at on June 12. The “giant whales” holding at least 1,000 BTC continue to show a pattern of hoarding, and the mid-sized “whales” (holding 10-1,000 BTC) are not backing down, while addresses holding smaller amounts of bitcoin are falling fast, suggesting that retail investors are panicking and selling. suggesting that retail investors are panicking and selling.

Bitcoin dips to ,400 "death cross" is imminent, and giant whales are still hoarding coins at low levels

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