As seen on the TradingView chart, Bitcoin is reaching the completion of its death cross. Bitcoin price is currently trading at $42,631 after hitting a low of $42,325 on January 13.
— Lark Davis (@TheCryptoLark) January 13, 2022
Cryptoanalyst Lark Davis previously reported that there have been eight death crossovers in BTC history, four of which marked bottoms while four preceded selloffs ranging from 30% to 65%. U.Today also reported on mainstream expectations as Bitcoin prints its ninth death cross.
The last time Bitcoin printed a death cross was in June 2021, days before it bottomed out at $28,800. Bitcoin finally regained momentum the following month and ended up printing a golden cross in mid-September. The golden cross is the opposite of the death cross, which means that the MA 50 exceeds the MA 200.
Moving average crossovers cannot be used as standalone indicators because they are based on historical data and are therefore lagging indicators. The market is frequently oversold and should come back the moment the crossover is confirmed, as it was in June 2021 and late March 2020.
On the positive side, according to U.Today, the CEO of Swiss bank SEBA, Guido Buehler, said that internal valuation models predict that Bitcoin will reach $75,000 in 2022. The CEO of SEBA Bank said that the institutional investors will contribute to the increase in the price of Bitcoin in 2022.
Positive news on the horizon
Earlier this year, the Salvadoran President made some bold predictions for Bitcoin in 2022, predicting a big price gain and a “huge surprise” for the main asset.
President Bukele predicted that the Bitcoin price would more than double over the next 12 months, reaching $100,000. He also predicted that two other countries would follow El Salvador’s lead and adopt Bitcoin as legal tender.
1. Sept/Oct The bill is submitted to Parliament. Pass.
2. Sent to the Palace Office for submission to Her Majesty for Royal Assent.
4. 2-3 weeks Gazetted by Govt activation date set.
4. On the activation date #BTC becomes legal tender. https://t.co/TNjQjeEbjN
— Lord Fusitu’a (@LordFusitua) January 12, 2022
Just 14 days into 2022, there are signs that Tonga, a Polynesian nation in the Pacific Islands, could be the second country to accept Bitcoin, following the example of El Salvador. In a series of tweets, Lord Fusitu’a, a former Tongan member of parliament, has released a five-point plan for Bitcoin to become legal tender in Tonga.
According to the former MP, this could happen as early as November. Lord Fusitu’a also states that Tonga’s legal tender bill will be modeled after that of El Salvador and almost similar to it.