*This article does not represent investment advice. Cryptocurrency trading is risky, and you might love all your capital.
The 200-day moving average is above the 50 day MA – Bitcoin Death Cross day.
Bitcoin (CRYPTO: BTC) and other leading altcoins have been mostly flat since June 18th at 4 pm.
Short positions are decreasing.
Similarities between today’s price pattern and the BCD pattern of 2019 continue.
Bitcoin price movement prediction is at the end of this article.
Comparing Today’s Bitcoin Chart and 2019 Bitcoin Death Cross Chart
It’s official: The Death Cross for Bitcoin has occurred for the fourth year in a row. The last three times, this lagging indicator has signaled a buying opportunity.
The 200-day moving average for Bitcoin is now $42,922, while the 50-day moving average is now $42,557.
(Hourly BTC/USD – Trading View)
Bitcoin Short Interest Chart
(BTCUSDSHORTS – TradingView)
The short interest is now decreasing, however, it is still near yearly high levels. This high level of shorts indicates the potential for a short squeeze.
The level of short interest on Bitfinex cryptocurrency exchange has increased over 1,800% this month; off highs of over 2,800%.
Current Bitcoin Analysis
The similarities between 2019 and 2021 BDC patterns are remarkably similar. In 2019 you had a downturn into the BCD day; many positions were short, then a short squeeze followed. That year, the Bitcoin price increased 40% from $7,443 to over $10,500.
Like 2019, Bitcoin price has been flat the day before the BDC; it had an approximately 1% price range for 32 hours now since the American stock market closed.
I am waiting to see a small increase in the Bitcoin price. A price above $41,000 will be a very bullish signal, as additional price increases will put pressive on short positions.
Written By John Barry, CEO at Quantify Crypto