Bitcoin (BTC) may be on the verge of entering a bearish trend based on a historic market pattern signal, according to digital asset analytics firm Glassnode.
Glassnode says that the one-month and six-month volume-weighted average price (VWAP) metrics are signaling that Bitcoin may enter a months-long downtrend.
VWAP represents the average traded price of an asset over a specific period, taking into account both volume and price.
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“An on-chain analog to the ‘death cross’ has emerged. The 30-day volume-weighted price of BTC has crossed below the 180-day, signaling weakening momentum. Historically, this pattern preceded three to six months of bearish trends.”
Source: Glassnode/X
A traditional death cross in technical analysis occurs when the 50-day moving average (MA) drops below the 200-day MA and is used
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