Does the hidden “desk loss” represent future troubles in Bitcoin (BTC)?
Desk loss appears when the 50-day moving average (MA) falls below the 200-day moving average on the price chart. With the advent of desk loss, Bitcoin could plunge into a bear market similar to 2018.
In the past, desk losses continued to fall by 70% in 2018 and 47% in 2019. 2020 desk loss appeared shortly after the plunge caused by the spread of the new coronavirus infection in March, proving to be a lagging indicator.
“Speculative reports suggest that Bitcoin could soon fall to $ 20,000 as the bearish cross between the 50-day and 200-day moving averages approaches.” Stephen Kelso of ITI Capital told CoinDesk.
Bitcoin rebounded on the 9th despite negative news from China, including a crackdown on money laundering and a ban on mining.
Desk loss may limit price increases. Resistance lines have been seen around $ 40,000, the upper limit of short-term price increases over the past week. The decline from May is settling down, but the outlook for long-term technical analysis does not appear to be very bullish.
｜ Translation: coindesk JAPAN
｜ Editing: Takayuki Masuda, Shigeru Sato
｜ Image: CoinDesk
｜ Original: Looming’Death Cross’ Could Signal Bitcoin Bear Market