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The Bitcoin (BTC) price slipped into the bearish zone today as the premier digital currency is changing hands at $21,710.75, down 0.63% at the time of writing. Bitcoin price indicators over the past few days have been flashing a potential bearish turn, a trend that was recently confirmed by popular crypto analyst and YouTuber, The Moon Carl.
While the Bitcoin death cross was spotted earlier this week, according to Carl, the death cross on the weekly chart has been confirmed.
JUST IN: #Bitcoin death cross on the weekly timeframe is now confirmed. pic.twitter.com/Q2r0Yh8sR7
— Carl From The Moon (@TheMoonCarl) February 14, 2023
The death cross is an indicator that is formed when the short-term moving average (MA), typically the 50-Day MA, crosses from above to below a long-term moving average, typically the 200-day MA. This trend formation is used to signal a reversal from a bull market to a bearish one, and this formation is sufficient to cause a stir in the industry.
However, the volatility and resilience of Bitcoin since the start of the year have largely tilted in favor of the latter. The coin is up by 31.14% in the year-to-date period, an indication that the coin is still primed for growth in the mid-to-long term.
No cause for alarm
Despite the Death Cross revelation, investors need not panic much as the indicator is not a final verdict on where the price of Bitcoin is moving to in the short term. The current price outlook is being fueled by a wide array of negative regulatory sentiment surrounding the U.S. Securities and Exchange Commission’s (SEC) crackdown on staking as well as stablecoins.
These negative sentiments do not last long, and we can see both retail and institutional investors get weaned off the FUD and start accumulating the digital currency once again.
While the death cross is flashing a likely switch to a price fall, Bitcoin’s Relative Strength Index (RSI) is currently pegged at 51, a neutral region. This implies the price can go either way, and a price fall will only happen if the current sell-off continues.