Bitcoin (BTC) Shows First Death Cross of 2024: What You Need to Know
Bitcoin has recently experienced its first death cross of 2024, a technical signal often associated with bearish market sentiment. This pattern occurs when a short-term moving average, typically the 50-day moving average, crosses below a longer-term moving average like the 200-day moving average.
In the case of Bitcoin, the 50-day simple moving average has dipped below the 200-day SMA on its daily charts, confirming the presence of a death cross. The last time Bitcoin encountered a death cross was back in September 2023. Despite the bearish outlook at that time, Bitcoin swiftly transitioned to a golden cross in October 2023, where the 50-day moving average surpassed the 200-day moving average, signaling a potential uptrend.
This bullish reversal following the death cross led to a substantial price surge, propelling Bitcoin to record highs near $74,000 in mid-March. As Bitcoin grapples with its first death cross of 2024, market observers are keenly monitoring the cryptocurrency’s price movement for indications of a potential reversal. The pivotal question remains whether history will repeat itself, with Bitcoin finding a bottom and subsequently forming another golden cross, or if the bearish trend will persist.
At the time of reporting, Bitcoin had climbed by 0.82% in the last 24 hours to $61,313, with intraday peaks touching $61,408. The cryptocurrency’s ongoing recovery, which commenced during Thursday’s trading session, has seen it rebound from recent lows. Bitcoin’s resurgence mirrored a rally in global equities on Thursday, briefly reaching $62,755. This upturn marked a turnaround following a period of significant market turmoil.
Thursday witnessed Bitcoin’s most substantial one-day gain in over 16 months, with the cryptocurrency still maintaining a modest weekly increase of 1.58%. Traders attribute the recent digital asset volatility to macroeconomic factors and forced liquidations by crypto speculators.
For Bitcoin to sustain its current upward momentum, it may need to decisively breach the daily moving averages of 50 and 200, positioned at $61,875 and $62,094, respectively. Achieving this breakthrough could potentially propel Bitcoin towards the $70,000 mark. Failure to surpass these levels, however, could result in Bitcoin consolidating below the daily moving averages, with support anticipated around $50,000.
