Bitcoin Price Must Flip $62k to Avoid Worst “death Cross” Consequences
The Bitcoin $BTC market is facing a crucial moment as it hovers around the $62,000 mark, a price level that could determine its next major move. According to popular trader Benjamin Cowen, if Bitcoin can flip $62,000 into a support level, it might avoid the worst effects of the impending "death cross." This technical event occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA, which is often seen as a bearish signal for the market.
Historical data, as Cowen notes, offers a mixed outlook. In 2023, Bitcoin rallied just after a death cross, pushing above the 50-day SMA and using it as a support to move higher. However, in other years like 2019, 2021, and 2022, the opposite occurred, with brief gains followed by significant losses. Cowen suggests that the key to Bitcoin's resilience this time around will be its ability to stay above the $62,000 threshold.
The market's current behavior adds complexity to the situation. Bitcoin $BTC recently climbed to $62,775 but then retreated slightly, reflecting cautious optimism. Despite this recovery, there's a noticeable lack of interest in the futures market, as traders remain hesitant to commit to new positions. Analysts like Julio Moreno have observed that this bounce might primarily be due to short sellers covering their positions, rather than a sign of strong buying interest.
As Bitcoin $BTC navigates this critical phase, all eyes are on whether it can sustain levels above $62,000. Failure to do so could lead to further declines, especially if broader macroeconomic conditions don't improve. Conversely, holding above this level might set the stage for a new bullish phase, similar to what happened in 2023.
