A crypto analyst has unveiled a new bearish death cross for Bitcoin (BTC), the world’s largest cryptocurrency. According to the analyst, Bitcoin is at risk of further price stalls before any potential upward movement.
Bitcoin Prints Another Bearish Death Cross
In an X (formerly Twitter) post on August 15, a crypto analyst identified as ‘Mags,’ shed light on Bitcoin’s recent price movements, emphasizing key pattern formations and the cryptocurrency’s future outlook. Sharing a chart illustrating Bitcoin’s price action from October 2023 to August 2024, Mags observed that BTC has printed a bearish death cross on the daily chart, where the 50-day Moving Average (50 MA) crosses below the 200-day Moving Average (200 MA).
Related Reading
The analyst indicated that the formation of this death cross signals a potential short-term weakness in the Bitcoin market. Generally, a death cross pattern in a cryptocurrency’s chart suggests the probability of further bearish momentum and price declines.
According to Mags, Bitcoin’s recent bearish cross is the second death cross the cryptocurrency has formed since its price bottom at $15,500. He revealed that the previous bearish cross had occurred in September 2023, when Bitcoin was trading at $25,000, representing less than half of its current price.
Following the 2023 bearish cross, Bitcoin traded sideways for several weeks, marked by considerable market volatility. However, the cryptocurrency’s price eventually regained momentum and reclaimed the moving averages. This led to a bullish cross, where 50 MA surpassed the 200 MA, triggering a strong upside rally.
Mags suggests that Bitcoin is currently replicating the same death cross pattern observed in previous trends. He predicts that the pioneer cryptocurrency will experience a few weeks of “choppy price action,” followed by a bullish confirmation if it succeeds in reclaiming the moving averages. The analyst further anticipates a significant bullish cross, potentially leading to a strong rally for Bitcoin.
Bullish Rise To $143,000?
In another X post, a crypto analyst identified as ‘Milkybull Crypto,’ shared a more optimistic price forecast for Bitcoin. By referencing a price chart that tracks Bitcoin’s movement from 2022 to the end of 2024, the analyst drew a parallel between the cryptocurrency’s current market situation and certain events that occurred in 2023.
According to Milkybull Crypto, many analysts had predicted a significant Bitcoin crash to $10,000 in 2023. However, the market defied these bearish expectations with an unexpected upward momentum.
Related Reading
The crypto analyst has disclosed that a similar situation was presently unfolding in the market, with most analysts calling for a Bitcoin cycle top. He expects that in the fourth quarter (Q4) of 2024, Bitcoin will exceed all predictions, rising towards $95,000, before experiencing a massive surge to $145,000.
As of the latest update, the price of Bitcoin is trading below the $59,000 mark. CoinMarketCap reports that the cryptocurrency had experienced a 4.32% decline over the past week which had pushed it to a current price to $58,484.
Featured image created with Dall.E, chart from Tradingview.com
Source: https://www.newsbtc.com/news/bitcoin/bitcoin-bearish-death-cross/