Bitcoin Faces Potential Downside Risk as Death Cross Looms
Bitcoin might face potential downside risk as the death cross looms. Find out how this bearish signal could impact the cryptocurrency market.
Posted 2 months ago in Bitcoin
Bitcoin might face potential downside risk slightly above $25,000, near where it trades at the moment, crypto analyst Ali noted in a new tweet. At the time of writing, BTC was marginally down 0.63% in the last 24 hours to $25,703. Bitcoin's death cross, the first seen since January 2022, is set to appear in days. A bearish indication, a death cross occurs when the moving average (MA) 50 crosses below the moving average (MA) 200 and, in theory, implies a further sell-off.
#Bitcoin daily chart hints at a looming death cross. A drop below the $25,200 support might confirm a deeper price correction ahead for $BTC .
Based on this, Ali notes that a drop below the $25,200 support might confirm a deeper price correction ahead for BTC. In this scenario, selling might build up, and BTC could target below $25,000, possibly as low as $24,756. A rally above $26,399 would suggest that the advantage has shifted in favor of buyers. This might spark an increase to $27,695 and, finally, to $28,142.
However, the daily RSI flattening below the neutral threshold of 50 may indicate that both bulls and bears are skeptical about the upcoming move, with the bears holding a slight advantage. Thus, it might be necessary to watch for a break above $26,399 or a dip below $24,756 to adjudge BTC's next move.
On Monday, the whole cryptocurrency market was trading down as Bitcoin's weakness drove other altcoins lower, with many touching multiweek lows. This shows that the broader crypto market is firmly under bearish control. Increased volatility might be implied as traders anticipate the release of key inflation figures later this week. According to Wu Blockchain, the United States will release August CPI and PPI numbers this week, while the European Central Bank will announce its interest rate decision. Year-on-year inflation is forecast to rise from 3.2% to 3.4%, while core inflation is expected to dip from 4.7% to 4.5%.
Nonetheless, despite the dismal Bitcoin price action, the BTC network has seen some headway. According to IntoTheBlock, Bitcoin registered the largest number of new daily addresses since 2017 over the weekend, the second largest in its history.
Last updated 9/11/2023, 4:06:34 PM
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