The Bitcoin bulls have continued to surprise many in the past few weeks despite several calls for an imminent price correction. The largest digital asset has gained over 3 percent today to trade around $23.8k.
However, analysts are now convinced Bitcoin price must flip the 50-week and 200-week moving averages (WMAs) into support lines before a death cross occurs.
Historically, Bitcoin price has experienced a choppy market every time a death cross occurs. After the January crypto rally, the 50 and 200W MAs, which have never crossed since the inception of Bitcoin, are at their closest proximity as shown below.
Experts Weigh In: Bitcoin Market Outlook
According to content strategists Keith Alan, the recent interest rate hike is a key factor for the Bitcoin market to consider. Furthermore, the digital asset industry has shown tremendous correlation with market equities in the recent past following increased crypto regulations.
“Now, SPX has a triple top on the Monthly, and BTC is headed for a Death Cross on the Weekly. These are toppy signs, but the FED, FANG, and labor market are dealing wild cards,” Keith noted.
As such, the Material Scientist cofounder indicated that Bitcoin must deal with key moving averages to break out from $25k.
According to analysts Rekt Capital, Bitcoin price is still on a falling trend until it flips the $25k resistance level. The bull case scenario is likely to be extended by increased liquidations that result in a short squeeze. Notably, approximately $39 million has been liquidated in the Bitcoin market in the past 24 hours according to data provided by Coinglass.
Source: https://coinpedia.org/bitcoin/the-bitcoin-death-cross-looms-what-traders-can-expect-next-for-btc-price/