Despite the recent spike in Bitcoin prices, the ‘Death Cross’ – a bearish pattern on technical charts – is still looming. To avoid it, Bitcoin bulls need to reclaim two key levels: $10,500 and $11,500.
A Death Cross is a bearish technical chart pattern where a short-term moving average crosses below a long-term moving average. It signals a potential trend reversal from bullish to bearish and is often used by traders as a sell signal. The pattern is considered bearish because it suggests that momentum has shifted and the market may continue to trend downward.
The ‘Death Cross’ is when the 50-day moving average (MA) crosses the 200-day MA. This signals a long-term bearish trend. Analysts believe that the last time a ‘Death Cross’ occurred was in June 2019, when BTC was trading at around $7,000.
This time around, a ‘Death Cross’ might happen if the 50-day MA drops below the 200-day MA, and both those averages stay below the current Bitcoin price.
Bitcoin Is Avoiding Death Cross So Far
The ‘Death Cross’ has been avoided so far because the 50-day MA has held above the 200-day MA. At the time of writing, the 50-day MA is at $10,605 and the 200-day MA is at $10,486.
However, the ‘Death Cross’ could still happen if Bitcoin prices drop further. To avoid this, Bitcoin bulls need to reclaim two key levels – $10,500 and $11,500.
The first level is $10,500. If the 50-day MA drops below this level, the ‘Death Cross’ could still be avoided if Bit coin bulls manage to reclaim it.
The second level is $11,500. If this level is reclaimed, then it will be a good sign for Bit coin, as it would signify that the bulls are back in control and that the market is not in danger of a bearish trend.
Overall, the ‘Death Cross’ is still a very real possibility, but it can be avoided if Bit coin bulls manage to reclaim two key levels – $10,500 and $11,500. If they succeed, then it will be a good sign for the future of Bitcoin.
