The market-leading cryptocurrency dropped another 11% overnight, leading market participants to fear the worst.
What Happened: Despite an influx of good news surrounding Bitcoin, 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 on YouTube, 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.
See Also: Bitcoin vs Ethereum
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.
So since #BTC has crashed -54% already and should this symmetry hold, BTC could crash an extra -54% if a Death Cross happened today
— Rekt Capital (@rektcapital) June 1, 2021
If the same scenario were to play out today, Rekt Capital forecasted the price could drop to as low as $18,000.
“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 on Twitter.
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.