Severe Downside Risks for Bitcoin on Bearish ‘Death Cross’ Appearance

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A bearish “death cross” pattern is looking to appear in the Bitcoin four-hour chart for the first time in five months, which is a warning for additional losses in the short term. But recent history indicates that the pattern might not lead to a prolonged bearish phase for the benchmark cryptocurrency. For instance, its last occurrence in August 2020 coincided with BTC/USD dropping 18 percent to $9,813. Nevertheless, supportive fundamentals helped the pair recoup its losses entirely, followed by a wild runup to an all-time high near $42,000 this January. It shows that the past death crosses appeared much near Bitcoin’s local bottoms. The BTC/USD exchange rate dropped nearly $10,500, or 25 percent, to trade near $31,800 after closing at its record high amid growing fears of inflation and the US dollar debasement. Before that, the pair delivered back to back monthly gains, rising by more than 1,000 percent from…

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