The Bear Signal That Suggests Another Bitcoin Crash Is Coming

Bitcoin has recently recovered above $40,000 to much fanfare from investors. This has been a long time coming given how low the digital asset had gotten following the market crash. It is a significant point to cross in the road to another bull rally. One thing though, is that the cryptocurrency still has a long way before it is back in bull territory, which market analyst Justin Bennett puts at the $45,000-$46,000 level.

As the market tries to work its way towards this bull trend, there are also signals that suggest that a bull rally is not the only likelihood in the near future of the digital asset. In fact, bitcoin recently tripped a trigger that suggests that the market is likely to fall into another crash before bulls can take proper hold of the values.

Bitcoin Falls Below 50-Day Moving Average

Indicators like the moving average and simple moving average can often point investors and traders towards the next steps in the market. For the longest time, bitcoin continued to trade above its 50-day moving average, suggesting a continuation of the bull rally, which has mostly been the case. This time, however, the digital asset has not been able to hold above this important metric.

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For the first time in over a year, bitcoin has traded below its 50-day moving average. Now, this may not seem like a big enough deal to pay attention to given that the cryptocurrency just started to mark another bullish recovery trend. However, it becomes more pertinent data to look at when we take a look at what has happened historically when this happens.

Bitcoin trading below 50 moving average

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BTC falls below 50-day moving average | Source:

Bitcoin has only traded below its 50-day moving average three times previously. Each time that this has happened, the outcome has always been the same; there is a crash. It followed this in 2014, 2018, and 2019. Once again, bitcoin has failed to trade above the 50-day moving average, and if history is any indicator, then BTC could very well be headed towards a price crash.

Where Are The Points To Sell?

For bitcoin and other cryptocurrencies, there is never a ‘perfect’ point to sell given that it is near impossible to predict where the market will swing. However, placing buys and sells between indicators can help one come close.

Related Reading | Bitcoin Hits Two-week High Imitating The Stock Rally

This trader expects the digital asset to see further downside before the bulls take over. This means that investors who do not wish to hold for the long term must decide the best points to offload their bags before bitcoin continues to decline.

Bitcoin head and shoulders suggest incoming sell-off

BTC selloff coming with breakout sellers | Source:

The current head and shoulders pattern will see breakout sellers target the current bullish trend, making it short-lived. The time between when these sellers emerge and when the current bull run ends will be the sweet spot. From there, the imminent crash will see bears take over the market, and fast, too.

Bitcoin price chart from

BTC trading north of $42K | Source: BTCUSD on
Featured image from Bitcoin News, charts from


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Bears Dominate Market as Bitcoin Trading Below Key Daily Moving Averages

Bitcoin (BTC) has experienced headwinds, driving its price to lows of $28K after enjoying a remarkable bull run that saw a record-high of $64.8K hit in mid-April.

BTC was hovering around $33,438 during intraday trading, according to CoinMarketCap.

BTC suffered a sharp correction on May 19 as the price fell to around $30,000, resulting in the biggest single-day drop of price, up to 30%. Furthermore, this price drop became the first time BTC had dropped below the 200-day moving average (MA). 

The 200-day MA is a key technical indicator used to determine the general market trend. It is a line that shows the average closing price for the last 200 days or roughly 40 weeks of trading.

Market analyst Lark Davis believes that bears are still in charge because Bitcoin is still trading below key daily moving averages, such as 50 MA, 200 EMA, and 200 MA. He explained:

“Bitcoin is still trading under the key daily moving averages. The bears are still in the driver’s seat of this market. That doesn’t mean I am a bear, just the facts of the market right now.”


Crypto analyst Joseph Young echoed these sentiments. He noted:

“Bitcoin funding rate is negative across all major exchanges. Means (that) many in the futures market are shorting (selling). Be careful today, volatility could surge.”


Bitcoin whales hold 48.37% of the circulating supply

According to on-chain metrics provider Santiment:

“Bitcoin’s whale addresses holding between 100 to 10k BTC are finally showing a turning point in accumulating again. In the past 2 weeks, these large addresses shed 60,000 BTC. They hold 48.37% of the supply after holding 49.09% near the All Time High.”

Santiment acknowledged that Bitcoin whales were buying again after selling off 60,000 BTC in the last 2 weeks. 

On the other hand, on-chain analyst William Clemente III trusts that retail investors (entities with 0.001 BTC to 1BTC) are not to blame for Bitcoin’s price drop because they have been aggressively adding their holdings.


It, however, remains to be observed whether bears will continue being in the driver’s seat in the Bitcoin market.  

Image source: Shutterstock


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