![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/06\/Bitcoin-death-cross-June-2021.jpg\")
<\/a><\/p>\nAfter a slew of news related to renewed crackdowns from China triggered a Bitcoin selloff, chartists and analysts are turning to a sinister-sounding technical signal.<\/p>\n
The original cryptocurrency has formed a death cross, meaning its average price over the last 50 days fell below that of its 200-day moving average. The indicator is typically seen as a closely-watched technical measure that could offer a hint at more pain to come.<\/p>\n
Many analysts had anticipated the coin, amid a recent downturn that\u2019s seen it lose 40% over the past two months, would form the grim-sounding pattern.<\/p>\n
But there\u2019s reason to believe the formation this time around might not be as bearish of a signal given that the 200-day moving average is still rising, according to Matt Maley, chief market strategist for Miller Tabak + Co. \u201cWhen it starts declining, that will be more compelling,\u201d he said.<\/p>\n
Indeed, Bitcoin\u2019s marking of a death cross in March 2020 proved no impediment to gains as it turned higher and formed a golden cross (when the pattern is reversed) two months later. But a death cross in November 2019 saw the coin trading lower one month later.<\/p>\n
Bitcoin fell Monday to a two-week low, dropping as much as 11.4% at one point to $31,735, after China announced that it summoned officials from its biggest banks to a meeting to reiterate a ban on providing cryptocurrency services. It\u2019s the latest sign that China plan to do whatever it takes to close any loopholes left in crypto trading.<\/p>\n
\u201cThe fact that there\u2019s a crackdown there perhaps does take away some of its luster,\u201d said Jeffrey Kleintop, chief global investment strategist for Charles Schwab & Co. \u201cI\u2019m not sure it\u2019s a signal of a longer-term change in direction, but it can certainly create some volatility. No one is sure the extent of the crackdown and China is an important player in the Bitcoin market.\u201d<\/p>\n
Some chartists also say Bitcoin, which failed to retake $40,000 last week, could re-test the $30,000 level, which it briefly touched during its brutal May selloff. Should that happen, it could have a tough time finding support in the $20,000 range.<\/p>\n
Other cryptocurrencies also retreated — the Bloomberg Galaxy Crypto Index, which tracks some of the biggest digital coins, fell near 13% at one point Monday, marking its lowest point since February.<\/p>\n
\u201cThere\u2019s just a lot of fear and when there\u2019s fear, people sell risky assets,\u201d Meltem Demirors, chief strategy officer at CoinShares, said on Bloomberg\u2019s \u201cQuickTake Stock\u201d streaming program. \u201cGenerally, investors are skittish.\u201d<\/p>\n
After a slew of news related to renewed crackdowns from China triggered a Bitcoin selloff, chartists and analysts are turning to a sinister-sounding technical signal.<\/p>\n","protected":false},"author":341034,"featured_media":394737,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[44696],"tags":[187],"class_list":["post-402755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitcoin"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/402755"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=402755"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/402755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/394737"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=402755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=402755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=402755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a><\/p>\nNow read: Banks block buying Bitcoin from overseas in South Africa<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"