Getty gettyBitcoin (BTC), which traded below chart support at 30.000.00 on Tuesday, fell to 28800. This was due to the formation a death cross over weekend. This will be displayed on the daily chart.The death cross was when the 50-day simplemoving average fell below 200-day SMA. These levels are much higher than its annual value of 18,798.71 which is the downside risk.Bitcoin's semi-annual pivot of 35,643.29 Monday was a major setback. The near-term stability was provided by the magnetic pivot at 33.214.67. So far, the June 23 high has been at 34.854.46The daily chart of BitcoinDaily chart for Bitcoin RefinitivRefinitiv XENITHThe death cross is clearly visible in the daily bitcoin chart. The declining 50-day simple moving mean at 41,019.08 is shown in the blue line. The rising 200-day SMA is at 43,194.68. From bottom to top, the horizontal lines are its annual value at 18,893, semiannual pivot at 35.643, quarterly pivot at 40.283, and monthly risky level of 61,916.Bitcoin will become volatile once the bubble bursts. To capture bitcoin's volatile trading patterns, you can use moving averages, my value levels and pivots as well as risky levels. Today, the semiannual pivot at 35.643 is a magnet.The weekly chart of Bitcoin:Refinitiv Weekly Chart for BitcoinRefinitiv XENITHThe bitcoin weekly chart is negative. It is below the 5-week modified moving average of 39,988.30. It is also below the 200-week simple average of 13,346.70. This is a downside. This would mean a return to the mean reversion, which was evident between November 2018-March 2019. This key moving average was held in March and April 2020.The downtrend line is drawn between the December 2017 high of 19,458.19 and June 2019 high of 13,895.10. This downtrend was reversed during the week ending August 2, 2020. This was a significant buy signal.The 13x3x3 weekly slow stochastic reading has fallen to 22.62. This indicates that bitcoin is still not oversold. This reading would fall below 20.00 and it would be considered oversold.Long term buy recommendations are made when the reading is below 10.00. This would indicate that bitcoin is too cheap to ignore.
