The cryptocurrency analyst Benjamin Cowen has recently highlighted a significant technical pattern on the weekly chart of Bitcoin, known as the “death cross.” This pattern occurs when a shorter-term moving average, such as the 50-week, crosses below a longer-term moving average, such as the 200-week. In financial terms, it is a bearish signal that suggests a potential trend reversal and a prolonged downward trend.
The death cross is often seen as a sign of bearish sentiment on the market and can lead to a significant price drop. It is a warning for traders to be cautious and for long-term investors to consider selling their holdings.
And there it is – the first weekly death cross for #BTC pic.twitter.com/Ana9VkuWl0
— Benjamin Cowen (@intocryptoverse) February 13, 2023
This pattern can also indicate a change in market sentiment, from bullish to bearish, and can result in a prolonged period of price consolidation.
Despite the recovery that began in January, Bitcoin was unable to enter a prolonged uptrend and quickly reversed two days ago, returning to the $21,000 price level and consolidating at the 200-day moving average. This could be a sign of a more significant trend reversal for the leading cryptocurrency.
However, it is important to note that the death cross is just one of many technical indicators used by traders and analysts to make informed decisions. While it can be a valuable tool in understanding market sentiment, it is not a guarantee of future market performance.
At press time, Bitcoin is trading at $21,827 and has recently gained 1.6% to its value in the last 24 hours, successfully bouncing from the local low of $21,476. Unfortunately, the golden cross traders expected on the daily chart of the assets did not happen.
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