The last time Bitcoin encountered a death cross was in September 2023, but the bearish sentiment was short-lived.
Author: Chirag Sharma
Written On: Sun, 11 Aug 2024 15:38:45 GMT
Bitcoin’s price action has recently caught the attention of traders and investors as the 50-day simple moving average (SMA) crossed below the 200-day SMA, forming what is known as a death cross. This technical pattern, seen on Bitcoin’s daily charts, typically signals a bearish trend. The last time Bitcoin encountered a death cross was in September 2023, but the bearish sentiment was short-lived.
In September 2023, Bitcoin experienced a similar death cross, which was quickly followed by a golden cross in October 2023. A golden cross occurs when the 50-day SMA crosses above the 200-day SMA, indicating a potential upward trend. This bullish reversal led to a significant price rally, propelling Bitcoin to new all-time highs near $74,000 by mid-March 2024. The rapid recovery following the previous death cross leaves the market wondering if a similar pattern might unfold in 2024.
As Bitcoin faces its first death cross of 2024, the market is closely monitoring the BTC price for signs of a potential bottom formation. The price recently faced rejection at the golden pocket resistance around $62,500, but it remains above the critical $60,000 level. While this support holds, the market remains cautiously optimistic about the possibility of another golden cross and a potential upward trend. However, if the bearish momentum continues, Bitcoin might face further declines before a reversal occurs.
The big question on everyone’s mind is whether Bitcoin will once again overcome the cross and move towards a golden cross, signaling a new bullish phase. As the market watches closely, only time will tell if history is set to repeat itself.
Real voices. Real reactions.
Add your reaction to this story:
Our Crypto Talk is committed to unbiased, transparent, and true reporting to the best of our knowledge. This news article aims to provide accurate information in a timely manner. However, we advise the readers to verify facts independently and consult a professional before making any decisions based on the content since our sources could be wrong too. Check our Terms and conditions for more info.