Bitcoin Hits First Death Cross of 2024: Is BTC in Danger?
By:Y, Yukie
Bitcoin has formed a death cross on the daily chart for the first time in 2024. Could this signal a continued price decline? Discover the insights here, and stay updated on the latest crypto trends and market analysis.
- Bitcoin’s First Death Cross of 2024: What Does It Mean for Investors?
- Will the Golden Cross Emerge After the Death Cross?
- Is the “Death Cross” on the Bitcoin Chart a Cause for Concern?
Bitcoin’s First Death Cross of 2024: What Does It Mean for Investors?
Bitcoin (BTC) forms first death cross in 2024: The sideways phase Bitcoin has been experiencing for nearly half a year has led to a significant technical event. This weekend, the two simple moving averages (SMA) of the last 200 and 50 days converged, resulting in the formation of the first “death cross” of the year.
A death cross occurs when the 50-day moving average crosses below the 200-day moving average, a typically bearish indicator for traders, suggesting a loss of short-term momentum. However, the significance of this recent death cross for Bitcoin’s price remains unclear. Generally speaking, while the crossing of the 50 and 200-day SMAs is a bearish chart signal, its direct impact on price, especially during prolonged consolidation periods, may not be as relevant as commonly perceived.
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Will the Golden Cross Emerge After the Death Cross?
The last time Bitcoin formed a death cross was in September 2023, yet the market’s bearish outlook proved fleeting. Just one month later, in October 2023, Bitcoin rebounded with a golden cross. This powerful indicator, where the 50-day moving average surpasses the 200-day moving average, signaled a potential upswing.
As evident in the accompanying chart, the death cross barely dented BTC’s price following the consolidation phase. Conversely, the golden cross triggered a significant rally, pushing Bitcoin to reach a record-breaking high of USD 74,000. This shift underscores the profound impact of these technical patterns on cryptocurrency market dynamics.
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Is the Death Cross on the Bitcoin Chart a Cause for Concern?
Will history repeat itself, leading to a Bitcoin price bottom and the emergence of another golden cross, or will the bearish trend persist? Many signs suggest a scenario similar to last year’s, indicating that BTC is poised to hover between USD 50,000 and USD 60,000 in August. This could precede a golden cross formation, potentially triggering a year-end rally in September. Such a rally would likely be fueled by the US election cycle and the Federal Reserve’s policy shift, echoing the market dynamics observed a year prior.
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