As of 8am on March 29, bitcoin?s price is at a low of $7,653 – down some 3.48 percent as the token continues to fall.
The digital cash coin has seen gigantic falls over the past few weeks, suggesting investors have hit the panic button.
Bitcoin fell from highs of ?11,677 earlier this month but has struggled to hold the $10,000 line.
And now bitcoin could be heading towards a ?death cross? scenario in a move that could chart the end of the cryptocurrency.
What is a death cross?
A death cross occurs when the 50-day moving average (MA) cuts the 200-day MA from above (bearish crossover).
This is used to illustrate when the 50-day MA moves below the 200-day MA, which indicates a bearish sign for future trading.
As seen on the bitcoin daily chart from Coin Desk, the 50-day MA looks set to dip below the 200-day MA imminently.
Fears remain that BTC’s fall could well compound and take the price back to around $1,000 with Bloomberg TV analyst Abigail Doolittle saying this week that the “death cross” trading data for bitcoin, “suggest to me that we could see bitcoin go all the way back below $1,000 per bitcoin?.
CoinDesk wrote: ?Some strategists are saying that the death cross could yield a big sell-off in BTC, possibly to as low as $2,800, a level last seen in September 2017.
?However, such fears are likely overstated, as the crossover tends to work as a contrarian indicator – that is, they tend to occur at the end of a big bear move, with prices rallying soon after.?
Bitcoin?s 50-day MA has already taken out to 100-day MA and experts suggest the short term trend line could be inching lower.
“When we are talking about bitcoin, I think it’s important to remember that we don’t have much history to go off of to identify?long term?trends,” Jim Iuorio of TJM Institutional Services told CNBC.
“That being said, any time the 50-day crosses the 200-day, it should flash a warning?and when you couple that with the fact that bitcoin has been trending steadily lower since the launch of futures, I think that it is a major negative.?
However, Fast Money trader Brian Kelly says he can see an uptrend in the chart of bitcoin that has been in play since August.
And he added he thinks the same uptrend could actually be just as indicative of where bitcoin is headed.
He told CNBC: ?Bitcoin, just like the spot FX markets, follows technicals closely, therefore these support levels gain more importance.
?If these levels hold, then it will confirm the uptrend from August is still valid.”
The last time the death cross pattern occurred for bitcoin was in September 2015 when BTC rallied close to $500 by early November from around $230.