Bitcoin Price- Bitcoin Can Overcome ‘Death Cross’ If It Holds Above $62,000, New Analysis Shows
Bitcoin Price– In a detailed thread on X on August 9, well-known trader Benjamin Cowen suggested that Bitcoin could potentially avoid a significant price drop if it manages to convert the $62,000 level into strong support. By drawing on historical data, Cowen highlighted how the cryptocurrency’s bulls might successfully fend off the bearish implications of an impending ‘death cross,’ which is a technical pattern often associated with further declines in price.
Bitcoin Faces Critical ‘Death Cross’ Challenge: Key Levels to Watch
Recent price movements have brought Bitcoin (BTC) to the threshold of a classic technical pattern known as the death cross. This pattern occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA, which historically signals potential further declines in the cryptocurrency’s price. Currently, the 50-day SMA is at $61,998, while the 200-day SMA is at $61,882, according to data from Cointelegraph Markets Pro and TradingView.
Despite the ominous name, the impact of a death cross on Bitcoin’s price has been mixed. As highlighted by trader Benjamin Cowen, the last daily death cross in 2023 actually preceded a rally. Cowen noted that Bitcoin managed to rise above its 50-day SMA following the crossover, holding it as support before moving higher.
In contrast, previous instances in 2019, 2021, and 2022 saw short-lived price increases during the death cross event, which ultimately gave way to losses. Cowen pointed out that the outcome of the current situation will likely depend on whether Bitcoin can first surpass the $62,000 mark (the 50-day SMA) and then sustain this level as support, similar to its performance in 2023.
If Bitcoin fails to maintain this support, Cowen warned that the downside risks might resurface, potentially until macroeconomic conditions shift significantly. Specifically, a substantial pivot by the U.S. Federal Reserve on interest rates would be needed to positively impact Bitcoin and other risk assets.
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