The world’s largest cryptocurrency Bitcoin (BTC) witnessed a brutal crash last week along with the collapse of the Terra ecosystem. Since then, the Bitcoin price has been flirting around $30,000 but has failed to give a daily close above it.
A major red sign on the technical charts is that Bitcoin has crossed a 3-day red chart! The last two times this happened, the BTC price corrected by a staggering 50%. If Bitcoin repeats this performance, we are heading all the way down to $15,000. Popular crypto analyst Lark Davis writes:
Interesting observation on the Bitcoin 3 day death cross. The last two times, the bottom was reached 6 days and 10 days after the cross. Did we reach the low one day before cross this time? Or one more crash? *** lagging indicator, past performance does not indicate future.
Amid the recent market correction, there’s a huge inflow of BTC at the exchanges. As on-chain data provider Glassnode explains: “Bitcoin Number of Addresses Sending to Exchanges (7d MA) just reached a 4-year high of 7,918.940 Previous 4-year high of 7,903.512 was observed on 13 May 2021”.
