As the maiden crypto faces resistance at $23,000, TradingShot, a pseudonymous analyst on TradingView observed that Bitcoin is staring at the dreaded death cross. In particular, the digital asset is approaching the first-ever one-week death cross in history, a scenario that could invalidate the ongoing bullish trendline.
Bitcoin’s previous attempts to hit death cross
It is worth noting a death cross occurs when the 50-day moving average falls below the 200-day moving average, indicating a bearish trend. Therefore, TradingShot observed that historically, every time Bitcoin surged by over 50% after hitting the one-week 200-day moving average, it represented a BTC price bottom apart from the January to March 2015 rise. Indeed, Bitcoin is up by about 50% from the November 2022 lows. Consequently, in a tweet on January 24, crypto trader and analyst by the pseudonym Thescalpingpro noted that Bitcoin’s current movement resembles the 2015 price pump that saw BTC rally 214%. Interestingly, the rally emerged just before a death cross was about to be realized. Furthermore, as Bitcoin faces a possible death cross, another crypto expert by the Twitter username Steve Courtney stated if Bitcoin realizes the one-week death cross, indicators point to a possible one-day golden cross before. Notably, the death cross technical indicator is a significant shift in the market and could signal a prolonged period of decline for the world’s largest cryptocurrency. Although the death cross comes with a bearish sentiment, it is sometimes welcomed by a section of the market as it offers an opportunity to purchase the asset at discounted prices.
Bitcoin price analysis
At the moment, Bitcoin’s momentum toward $23,000 appears to have cooled down with minor corrections. The asset is valued at $22,599 with 24 hours losses of over 1%. From the technical analysis perspective, the daily summary of the one-day gauges aligns with ‘buy’ at 15, while moving averages are for a ‘strong buy’ at 13. Oscillators are neutral at 7. In the meantime, the focus turns to Bitcoin’s support level of $22,500. Breaching the position could spell more trouble for the crypto. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
