$BTC recently faced a significant sell-off, dropping over 8% in the last 30 days and now trading around $64,400. The downward trend has led to a "death cross" on Bitcoin's 12-hour chart, a signal indicating potential bearish momentum. What to expect? :
The 'Death Cross' and What It Signifies
A death cross occurs when a short-term moving average crosses below a longer-term moving average. In Bitcoin's case, the 50-period moving average dropped below the 100-period moving average, indicating a potential downtrend. Popular crypto analyst Ali Martinez shared this observation, pointing to additional signs of weakness, such as a red 9 candlestick from the TD Sequential, indicating a sell signal.
What Could Happen Next?
If Bitcoin falls below the $63,300 mark, it could continue sliding to the $61,000 and potentially even the $59,000 levels. This significant drop could create further uncertainty among investors, leading to increased selling pressure. However, it's crucial to remember that a death cross doesn't necessarily spell doom—it can also signal a near-term rebound with above average returns.
The Bullish Case: A Different Perspective
Despite the recent dip and bearish signals, some analysts believe that Bitcoin's price could soon turn around. An indicator suggesting Bitcoin's entrance into bullish territory is the 200-day simple moving average (SMA), which serves as a key indicator of long-term trends. Historically, when the 200-day SMA reaches new highs, Bitcoin experiences significant gains. A similar pattern occurred in early November 2020, six months after the third halving, leading to a 4.5-fold increase by mid-April 2021.
What Does This Mean for Investors?
Investors may feel a sense of uncertainty amid these mixed signals. Some experts predict a new all-time high for Bitcoin within the next 1-2 weeks, potentially reaching $120,000 in this cycle. Others suggest a more conservative approach, with Fidelity Digital Assets noting that Bitcoin is no longer "cheap" and is instead trading at its "fair" value.$BTC #bitcoin #BullorBear #BTC
