Death Cross Forming in Bitcoin

A bearish ‘death cross’ is forming on the Bitcoin daily chart. The pattern is defined by the 50-period moving average crossing below the 200-period moving average. Bitcoin has been in a steady downtrend, losing almost half of its value since the June high, when prices neared $14,000. Bitcoin prices peaked near $20,000 in December of 2017.

Amid the technically bearish picture, Bitcoin traders are already looking ahead to the ‘halving’ set to take place in May 2020. This event halves the rate at which new Bitcoins are created, with miners receiving 50% fewer BTC for verifying transactions. Bitcoin’s supply is limited to 21 million coins and currently there are roughly 18 million in circulation. Bulls expect the event to boost Bitcoin prices, while skeptics argue that the halving is already priced in.

Bitcoin’s recent low came on the heels of a November 21st statement from the People’s Bank of China (PBoC) Shanghai Head office. It announced…