- Bitcoin price dipped below $34,000 for the first time in two weeks.
- Market participants seem worried about a death cross between the 50- and 200-day MA.
- Despite the pessimism, a particular technical indicator suggests its time to buy BTC.
Bitcoin price is down by nearly 19% after rising to a high of $41,400 on June 15. The sell-off has intensified over the last few hours, pushing BTC below $34,000.
Bitcoin price could rebound if this support level holds
On June 17, the Tom DeMark (TD) Sequential indicator presented a sell signal on Bitcoin’s daily chart suggesting that a steep correction was underway. A spike in selling pressure behind the flagship cryptocurrency was significant enough to validate the bearish formation.
As Bitcoin price broke below the middle Bollinger band on the daily chart, a downswing to the lower band at $33,400 seemed inevitable. Fears over the death cross between the 50- and 200-day moving average appeared to have added fuel to the bearish trend as some technical analysts believe it is a strong signal for further downward pressure.
BTC/USDt 1-day and 12-hour chart
Now that Bitcoin price has dipped below $34,000, a buy signal has emerged on its 12-hour chart.
The TD Sequential indicator is currently on a red nine candlestick, which is considered a bullish formation. If buy orders begin to pile up around the current price levels, BTC might bounce off the $33,400 support zone towards $37,000.
It is worth noting that Bitcoin price must hold above June 9’s low of $32,400 for the bullish outlook to be validated. Failing to do so could ignite another sell-off that pushes BTC to $30,000 or even $25,000.