Bitcoin’s Rare Death Cross
The Bitcoin community has been alerted to the appearance of a rare formation on the BTC chart known as the death cross. This formation occurs when the 50-day moving average crosses below the 200-day moving average. The death cross was observed on Wednesday, September 13, just as Bitcoin was finding support above $25,800.
Past Instances of the Death Cross
The last time Bitcoin experienced a death cross was in January 2022. Following that formation, the price of BTC plummeted, losing over 60% of its value by June. However, it is important to note that death crosses do not always result in an immediate price drop. There have been instances where Bitcoin rallied before eventually declining.
Possible Implications for Bitcoin
If this death cross follows the pattern from 2022, it could have devastating consequences for the price of Bitcoin. A 60% drop from its current level of $26,300 would signify a new cycle bottom. However, some analysts suggest that if Bitcoin manages to hold above $25,000, it could invalidate the death cross.
Current Status and Market Demand
Despite the appearance of the death cross, as of Thursday morning, Bitcoin’s price is still holding above $26,300. This could indicate that there is enough market demand to counteract the bearish formation.
Hot Take: Will Bitcoin Defy the Death Cross?
The recent reemergence of a death cross on Bitcoin’s chart has raised concerns among investors. While historical data suggests that this formation often leads to significant price declines, it is not a guaranteed outcome. Some analysts argue that if Bitcoin can maintain its support above $25,000, it may defy the death cross and continue its upward trajectory. The next few days will be crucial in determining whether Bitcoin can withstand the bearish pressure or if a significant downturn is imminent.
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