Bitcoin’s First-Ever Weekly Death Cross: What Does it mean?
Crypto market sentiment remains cautious as Bitcoin struggles to regain lost ground. With $22,000 as resistance, Bitcoin is at three-week lows as it enters an important week of macroeconomic data. The upcoming United States Consumer Price Index (CPI) release is the most critical report and will be closely watched.
What we are going to learn?
Bitcoin’s First-Ever Weekly Death Cross: How are Whales Reacting?
Whales are buying at current levels, providing hope for Bitcoin’s recovery, and there is potential for volatility to return, depending on the response of the crypto markets and the U.S. dollar to the macroeconomic data. The weekly chart shows a breakdown, with $21,839 being the point of interest, while the daily chart shows a potential new crossover, which could lead to a harder and more prolonged bear market.
BTC Price Movement vs US Dollars
Analysts are also keeping an eye on the movements of the U.S. dollar. After a strong performance in January, the dollar has started to slip in February, potentially providing support for risk assets such as Bitcoin.
The week ahead promises to be an eventful one for the cryptocurrency market, with a range of macroeconomic data and technical indicators set to influence the direction of Bitcoin’s price. Traders and investors alike will be closely monitoring the situation to see how things play out.
Bitcoin Death cross: What does it mean?
The weekly chart of Bitcoin shows a bearish technical pattern called the “death cross,” as pointed out by cryptocurrency analyst Benjamin Cowen.
— Benjamin Cowen (@intocryptoverse) February 13, 2023
This pattern emerges when a shorter-term moving average (e.g., 50-week) crosses beneath a longer-term moving average (e.g., 200-week) and indicates bearish sentiment in the market.
The death cross can trigger a substantial decline in price, prompting traders to be wary and long-term investors to contemplate selling their assets.
Despite a recovery that started in January, Bitcoin has been struggling to sustain a prolonged uptrend, and the death cross pattern suggests that this could be an indication of a change in market sentiment.
Recently, the cryptocurrency consolidated at the 200-day moving average, which brought its price back to around $21,000. Cowen has proposed that this consolidation could signify a significant trend reversal for Bitcoin.
It’s crucial to acknowledge that the death cross is merely one of numerous technical indicators utilized by analysts and traders to arrive at well-informed conclusions.
Bitcoin First Weekly Death Cross: What is Crypto Twitter Saying?
#Bitcoin Weekly Death Cross Confirmed
I expecting this Death Cross few week ago. Finally its done. This is the first time happens in Weekly TF, I mean Big TF. So, Idk what going on. But i can say, This is 'NOT' a good sign $BTC
Like and RT Appreciated. Follow me for more Update pic.twitter.com/w9hEQwg1tt
— Trader_J (@Trader_Jibon) February 13, 2023
Lagging indicator, nothing to worry about.
That’s why r prince beats number of followers
— EGRAG CRYPTO (@egragcrypto) February 13, 2023
dude… this death cross comes after 13 or 14 bearish months… believe me, it's not an indicator that warns of anything. We have been falling for more than a year.
— lodelascripto (Néstor) (@lodelascripto) February 13, 2023
Even though it may offer useful insights into the market sentiment, it is not a foolproof guarantee of the market’s future performance.
Presently, Bitcoin’s value is at $21,827, having gained 1.6% in the past 24 hours after recovering from a local low of $21,476. Unfortunately, traders’ anticipation of a golden cross on the asset’s daily chart did not come to fruition.
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