The bulls are in a state of disbelief as Bitcoin prices came crashing down to $42,453 at noon (UTC) today. The price drop is especially shocking as BTC experienced a Golden Cross barely seven days. Speculation increased with one stating that Bullish run 2.0 may finally be here as Bitcoin experience a golden cross. An earlier price correction had little or no effect on BTC technicals as they stayed the same after the dip.
Most bullish speculations are that we should be seeing BTC above $50,000 now but we are seeing a reverse of these predictions. It is important to note that Coinfomania raised awareness about a situation like the one experienced today and hinted at a possible reason for the current predicament the king coin is facing.
A Spike In Selling Pressure
Commenting on the golden cross, the analyst stated that using the Fibonacci Retracement, we can create price channels. The current channel that BTC is trading in has coin trading between $42,500 and $51,000. This means that the strongest support in this channel is $42,500. If BTC fails to continue its uptrend and remain above $42k, it will fall back to the $42,500 and $37,000 channel.
The above image shows a chart containing price movement and RSI. Looking at the Relative Strength Index (RSI), it is hard not to notice the decrease in this indicator. It is taking a dip going as low as 40 – the lowest in more than 30 days. Price movement suggests that although the $42,500 support flipped, the buyers were quick to rally the market and send BTC back to $43k.
Did the bitcoin golden cross just turn into a golden trap? The concept of a golden trap is one that only time will define. The term will be firmly established if BTC dips as low as $37,000. It is also important to note that the correction the king coin faced affected the Moving Average (MA) and as a result, we are about to see another death cross on BTC on the 1-hour chart.
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