As Bitcoin has formed a new death cross and is showing a weak price structure, it appears that BTC may be entering a critical point of the current cycle.
Bitcoin is the largest and most widely used cryptocurrency, and therefore, all other cryptocurrencies can be expected to follow BTC’s trend. At press time, the coin is trading at $68,328.90 with a decline 3.47% of over the past 24 hours.
According to the data from TradingView, BTC has been trading below its 50-day and 200-day simple moving averages. The last attempt to break above the $74K support level failed, and BTC has pulled back towards the $67K level.
The death cross formed with both the 50-200 day SMAs indicates that momentum to the upside has weakened substantially. The next support zone of $67K could be tested again in the short term if sellers continue to dominate BTC.
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Recently, crypto analyst Ali Charts commented on X about how the three-day chart of BTC is showing a ‘death cross’,
In his post, he talks about how, statistically, if the same thing happens again (when BTC had a ‘death cross’), it would be occurring again as this would be the final leg down of Bitcoin prior to the next cycle.
The printing of a death cross does not guarantee additional downside, but in the past has indicated weakening momentum in the coin and increasing selling pressure.
Because of these developments, traders will pay close attention to key levels of support over the next few days when determining Bitcoin’s next move, either up (continued stabilization) or down (in another corrective phase).
Market participants will be closely monitoring Bitcoin’s ability to regain the $74,000 level since this would reaffirm bullish momentum.
If there is a sustained breakout above resistance, it would weaken the bearish perspective; however, if there are multiple rejections at current price points, then it will further strengthen the downside risk associated with the death cross.
Also Read: Bitcoin Short-Term Holders Send 27,000 BTC to Exchanges as CryptoQuant Data Signals Bullish Shift
