Bitcoin completes the death cross

As can be seen on the TradingView chart, Bitcoin is completing a death cross. The price is currently trading at $ 42,851 after falling to $ 42,325 on January 13th.

Analyst Lark Davis previously pointed out that there have been eight Death Crosses in BTC’s history, four of which marked lows and four resulted in a sell-off from around 30% to 65%.

The last time BTC made a death cross was in June 2021, days before it hit a low of $ 28,800.  then regained momentum the next month, forming a golden cross in mid-September. The golden cross is the opposite of a death cross, meaning the 50 MA rises above the 200 MA.

diagram BTC / USD Daily | The source: TradingView

MA crossovers are not used as standalone indicators as they are based on slower data and therefore are lagging indicators. The market is often oversold and until the crossover is confirmed, such as in June 2021 and late March 2020, the market will return bullish.

With a more positive assessment, Guido Buehler, CEO of Swiss bank SEBA, said that internal valuation models predict that Bitcoin will reach $ 75,000 by 2022. Institutional investors will support Bitcoin’s rally into 2022.

Positive news Come

Earlier in the year, the President of El Salvador made bold predictions for Bitcoin in 2022, forecasting massive gains and “big surprises” for the top asset.

According to President Bukele, the price of Bitcoin will more than double in the next 12 months, reaching $ 100,000. He also predicts that two more countries will follow El Salvador and accept Bitcoin as legal currency.

We are just entering the year 2022 and there are signs that Tonga (a Polynesian country in the Pacific Islands) could be the second country to accept Bitcoin after El Salvador. In a series of tweets, Lord Fusitu’a, a former member of the Tongan Parliament, said show 5-point plan for Bitcoin to become legal money in Tonga.

According to the former MP, this could happen as early as November. Lord Fusitu’a also claimed that the Tonga bill would emulate and be very similar to El Salvador’s law.

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