Bear Cross on Key Indicator Could Push Bitcoin Price to $7,300
Bitcoin remains pinned below $8K as the 128 and 111-day moving average are on the verge of a bearish cross which could drop the price below $7,700.
At the moment, not too much is happening with Bitcoin’s (BTC) price action. The price continues to drop and a series of lower highs occur even as bullish news hits the press week after week. The news of Bakkt Bitcoin futures trading volume increasing by 796% failed to positively impact Bitcoin price and Fidelity Investments’ announcement that it has launched crypto custodial services also did little for the market.
Daily crypto market data. Source: Coin360
The general sentiment amongst Bitcoin traders seems relatively unenthusiastic and many traders view Bitcoin’s current price action as an opportunity for accumulation at $7,800 and below.
This conclusion is supported by the Crypto Fear and Greed Index (CFGI) which currently shows investor’s fear level as being flat throughout the month of October. If the $7,800 support fails to hold and Bitcoin drops to $7,300 and below, then one would expect the fear index to rise.
Crypto Fear & Greed Index Source: Alternative.me
As Bitcoin’s price gradually sinks lower, traders appear to have turned their appetites elsewhere. Earlier this week crypto market analyst Crypto Michael tweeted that altcoins have quietly posted amazing gains since bottoming in September.
Below are the top altcoin performers compared against Bitcoin:
– ETH +36%
– XRP +50%
– XLM +43%
– ZRX +170%
– LINK +98%
With that said, Bitcoin is again approaching an important point and it seems likely that volatility could increase over the next 24 to 48-hours. Let’s take a closer look at the charts to see where Bitcoin stands.
Bitcoin is bearish on nearly all time frames
BTC USD daily chart. Source: TradingView
As shown by the daily chart, Bitcoin price is approaching the double bottom at $7,775 and $7,714. As mentioned previously