The market-leading cryptocurrency dropped another 11% overnight, leading market participants to fear the worst.
What Happened: Despite an influx of good news surroundingBitcoin, the digital asset failed to record any upward movement in price and instead fell to a low of $31,850 earlier today.
The negative sentiment led to some of Bitcoin’s strongest advocates suggesting that it might be “game over” for now, as the digital asset failed to price in any bullish news over the past week.
In a video onYouTube, popular crypto influencer Lark Davis said, “Bitcoin is looking bad and it could get worse.”
Lark points out that based on the current price action, Bitcoin is likely to confirm a “death cross” within the next ten days.
A death cross is a lagging technical indicator that appears when price action has already been less than optimal, he points out, but if confirmed, it would possibly lead to an even further decline in price.
According to crypto trader and analyst Rekt Capital, when the death cross scenario played out in previous years, Bitcoin corrected by over 50% pre-death cross and a further 55% post-death cross.
“Bitcoin price has dropped below 200-SMA for 17 consecutive days and counting. This metric has *always* marked the end of a bull run and the start of a bear market,” said Timothy Peterson, Investment Manager at Cane Island Alternative Advisors onTwitter.
At the time of writing, Bitcoin was trading at $31,871 with a daily trading volume of $44 billion. The rest of the crypto market also saw sharp declines in price as large-cap coins like Ethereum, Dogecoin and Cardano also fell by over 15% in the past 24-hours.