Bitcoin’s price action has recently caught the attention of traders and investors as the 50-day simple moving average (SMA) crossed below the 200-day SMA, forming what is known as a death cross. This technical pattern, seen on Bitcoin’s daily charts, typically signals a bearish trend. The last time Bitcoin encountered a death cross was in September 2023, but the bearish sentiment was short-lived.
Previous Death Cross and Golden Cross in 2023
In September 2023, Bitcoin experienced a similar death cross, which was quickly followed by a golden cross in October 2023. A golden cross occurs when the 50-day SMA crosses above the 200-day SMA, indicating a potential upward trend. This bullish reversal led to a significant price rally, propelling Bitcoin to new all-time highs near $74,000 by mid-March 2024. The rapid recovery following the previous death cross leaves the market wondering if a similar pattern might unfold in 2024.
Current Price Resistance and Market Outlook
As Bitcoin faces its first death cross of 2024, the market is closely monitoring the BTC price for signs of a potential bottom formation. The price recently faced rejection at the golden pocket resistance around $62,500, but it remains above the critical $60,000 level. While this support holds, the market remains cautiously optimistic about the possibility of another golden cross and a potential upward trend. However, if the bearish momentum continues, Bitcoin might face further declines before a reversal occurs.
What’s Next for Bitcoin?
The big question on everyone’s mind is whether Bitcoin will once again overcome the cross and move towards a golden cross, signaling a new bullish phase. As the market watches closely, only time will tell if history is set to repeat itself.
