- Bitcoin nears a Death Cross with a bearish signal which may start volatility and fear among investors in the coming weeks.
- The 50-day moving average is declining, signaling a potential downside unless Bitcoin holds above key resistance levels.
- A bullish reversal is possible if Bitcoin breaks resistance, but a confirmed Death Cross could lead to intensified selling pressure.
Cryptocurrency expert Doctor Profit gave a warning about the upcoming Bitcoin Death Cross. Earlier, Bitcoin experienced a huge Death Cross in 12 hours. On its daily chart, the cryptocurrency is heading towards the same crossover. This will happen within the next three or four weeks. Historically, a Death Cross has been a bearish signal and has instilled fear and uncertainty among investors.
Golden Cross Fueled Bullish Momentum
When the 50-day moving average surpassed the 200-day moving average in October 2024, Bitcoin saw a Golden Cross. Crossovers of this kind are quite positive. After that, Bitcoin reached fresh all-time highs. But following a peak, the price of Bitcoin began to fall. Investors have been fearing a bearish crossover due to this fall.
Now, Bitcoin’s 50-day moving average is sloping down, headed towards a crossover below the 200-day moving average. This is the setup for an imminent Death Cross. Typically, this pattern is followed by higher selling pressures and higher market volatility.
Currently, the Bitcoin price is $84,308.94, which reached an intraday high of $84,346.69, while the low was $83,777.21. There is a clearly defined price action of short-term consolidation. The down pressure might become stronger with a confirmed bearish crossover if Bitcoin does not maintain these levels.
Bullish momentum can pick back up if Bitcoin is able to stay above the 200-day moving average. Furthermore, the Death Cross might be rendered worthless by breaking resistance levels, which would permit Bitcoin to start rising again. On the other hand, the bearish crossover will probably confirm additional downward movement if selling pressure increases.
