Key Price Level To Decide Bitcoin Fate<\/h2>\n
Given the current circumstances faced by Bitcoin, Cowen reveals that Bitcoin’s potential to overturn the looming price decline hinges on its performance relative to a key price marker: $62,000<\/a>. This level is essential for Bitcoin to flip from resistance into support to wave off the bearish implications of the Death Cross.<\/p>\n Elaborating on the definition of “death cross,” Traders use this pattern to describe the crossover of the 50-day simple moving average (SMA) falling below the 200-day SMA, traditionally viewed as a predictor of potential price declines.<\/p>\n Although the outcome following such a pattern isn’t always straightforward or immediately bearish, historical data shows mixed results, making the current formation of this pattern critical.<\/p>\n Cowen pointed out that Bitcoin\u2019s reaction to the death cross has varied. For instance, following the death cross in 2023, Bitcoin\u00a0avoided\u00a0further declines<\/a> and<\/span>\u00a0rallied, breaking above its 50-day SMA and using it as support for subsequent gains.<\/p>\n This pattern was also mirrored in previous years, such as 2019, 2021, and 2022, where Bitcoin experienced initial rises post-death cross but ultimately succumbed to the bearish expectations<\/a>.<\/p>\n Cowen suggests that for Bitcoin to replicate the positive outcome seen in 2023, it must first rise above the $62,000 mark and maintain it as support.<\/p>\n The durability of this move will likely depend on first #BTC<\/a> getting above its 50D SMA ($62k), and then holding it as support like it did in 2023.<\/p>\n If it fails to hold as support like 2019, then the slow grind down continues until a sufficient pivot from the Fed IMHO. pic.twitter.com\/9LC77B2W14<\/a><\/p>\n \u2014 Benjamin Cowen (@intocryptoverse) August 8, 2024<\/a><\/p><\/blockquote>\n While there is not any near-term catalyst<\/a> so far that could support BTC in making the initial rise and flipping its resistance, the sustainability of such a rally might now heavily rely on broader economic conditions.<\/p>\nImplications Of The Death Cross Formation<\/h2>\n
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![\"Death](\"https:\/\/pbs.twimg.com\/media\/GUflenzXMAEFxc2?format=jpg&name=medium\")