The biggest cryptocurrency by market value, bitcoin, may be headed towards its significant “death cross” in 2023.
For the first time since January 2022, a “death cross,” a negative chart pattern, is expected to appear on Bitcoin’s daily chart. Notably, the weekly chart painted a death cross earlier this year in February 2023; this would be the first instance of this kind on the daily chart in 2023.
The feared death cross pattern would result from the daily moving average 50 for Bitcoin crossing below the daily moving average 200. Remember that Bitcoin painted a golden cross on its daily chart in February of this year, setting the stage for its April ascent to highs above $31,000?
Analysts are already closely monitoring the upcoming crossover, which is predicted to happen in the next days, most likely next week.
Death crosses, on the other hand, are sometimes referred to as a lagging indication by specialists, thus they shouldn’t be seen as a definitive signal. The Bitcoin death cross is also a weak solitary indicator, as experience has demonstrated.
After the Securities and Exchange Commission postponed making a judgement on all applications for spot Bitcoin exchange-traded funds (ETFs), Bitcoin’s falls continued. The most popular cryptocurrency today hit a low of $25,528 that hadn’t been seen since mid-June of this year before somewhat recovering.
BTC was trading at $25,595 at the time of writing, down 0.38% over the previous day.
What analysts say
Cryptocurrency researcher Ali believes that Bitcoin may still be in trouble.
BTC is known to typically start a bull run when it surpasses the average cost basis of holders with a track record of six months to three years, according to historical data covering the previous ten years. This model indicates that Bitcoin is now well below the critical breakthrough threshold of $33,755.
Another cryptocurrency specialist, Rager, thinks that the price of Bitcoin does not always move in the same way as in previous cycles. He continues by saying that even though it may not appear to be an upswing, the fundamentals of the Bitcoin price halving and block reward reductions will gradually produce an upward trend on the market.
