Bitcoin on the Brink as Death Cross Looms

Alex Dovbnya

Bitcoin hovers dangerously close to a “Death Cross,” a technical indicator often signaling a bear market

Bitcoin finds itself on the cusp of a concerning technical indicator: the “Death Cross.” This phenomenon occurs when Bitcoin’s 50-day Simple Moving Average (SMA) crosses below its 200-day SMA. 

Forbes analyst Steven Ehrlich recently highlighted this trend, which often signals impending bearish momentum. 

Image by @Steven_Ehrlich

For the uninitiated, moving averages help smooth out price data to create a single flowing line, making it easier to identify the direction of the trend.

Bitcoin’s modest volatility 

Investor sentiment has been tense, with Bitcoin’s price showing modest volatility within a 24-hour range of $25,641.06 to $25,925.03. 

According to CoinGecko data, Bitcoin’s market cap is a formidable $503.8 billion.

However, the looming Death Cross could disrupt this relative stability,. 

It is not a guarantee of an upcoming bear market, but it does raise eyebrows among market participants. 

Bernstein’s bullish prediction 

In the meantime, financial research firm Bernstein predicts a significant rally in the cryptocurrency market, primarily led by Bitcoin, due to a recent court decision favoring Grayscales against the U.S. anticipated surge is expected to be driven by long-term institutional investors

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