CDS Crypto News Bitcoin Price Must Exceed $62K to Mitigate the Risks of a Severe ‘Death Cross’
Crypto News

Bitcoin Price Must Exceed $62K to Mitigate the Risks of a Severe ‘Death Cross’

121
Bitcoin Price Must Exceed $62K To Mitigate The Risks Of A Severe 'Death Cross'

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 Price Must Exceed $62K To Mitigate The Risks Of A Severe 'Death Cross'
Source: TradingView

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.

Bitcoin Price Must Exceed $62K To Mitigate The Risks Of A Severe 'Death Cross'
Source: Benjamin Cowen

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.

For the latest in crypto updates, keep tabs on Crypto Data Space.

Bitcoin Price Must Exceed $62K To Mitigate The Risks Of A Severe 'Death Cross'

Leave a comment

Leave a Reply

Related Articles

XRP vs Rexas Finance: Which Crypto Will Lead the Market?

XRP's rise continues, but Rexas Finance (RXS) emerges as a strong competitor...

Digital Collectibles Boom: Ethereum NFT Sales Reach $201M, Top Weekly Volume

Digital Collectibles Boom: Ethereum NFT Sales Reach $201M, Top Weekly Volume

ETH Whale Accumulation: Binance Withdrawals Signal Whale Optimism for Ethereum’s Price Recovery

ETH Whale Accumulation: Binance Withdrawals Signal Whale Optimism for Ethereum’s Price Recovery

AMD vs Nvidia: Diversification Strategy Drives Mixed Results for AMD in Q3 2024

AMD vs Nvidia: Diversification Strategy Drives Mixed Results for AMD in Q3...