As a seasoned researcher with over a decade of experience in analyzing financial markets, I find myself constantly intrigued by the enigma that is Bitcoin and its seemingly unpredictable behavior. The Death Cross indicator, a bearish signal that has appeared on Bitcoin’s chart, has once again caught my attention. Having closely observed the market since its inception, I can attest to the fact that this cryptic creature often signals turbulence ahead.
Financial expert Benjamin Cowen recently delved into the significance of the ‘death cross’ signal, reappearing in Bitcoin‘s market trends. This signal makes the $62,000 mark a pivotal point for Bitcoin to prevent another steep price decline.
In a video shared on his YouTube channel, Cowen warned that Bitcoin might plummet further if it can’t sustain its position above $62,000 amidst the approaching Death Cross. After bouncing back from a price dip below $50,000 on August 5, Bitcoin reached $62,000, but this recent surge triggered the Death Cross, which now signals potential decreases in the value of the leading cryptocurrency.
The Death Cross And Its Impact On Bitcoin’s Price
The death cross indicator is usually considered bearish and suggests that a prolonged period of declining prices may be on the horizon for the asset in question. This death cross occurs when the 50-day moving average drops below its
If Bitcoin doesn’t manage to rise and stay above the $62,000 mark soon, there’s a chance it could experience further price drops, potentially even dipping below the significant threshold of $60,000. To understand what might happen next, some analysts are drawing parallels to the “Death Cross” event that occurred in 2019. This comparison offers insights into Bitcoin’s possible future direction.
2019 saw the Death Cross signal on the flagship cryptocurrency, which indicated a peak in its local market. After this point, it posted lower highs and remained bearish for approximately four months. Yet, Cowen acknowledges that current circumstances might not follow the same pattern as before, suggesting that such indicators may behave “slightly differently” during various stages of the market cycle.
As a researcher delving into the intricacies of Bitcoin, I find myself pondering over the implications of the recent Death Cross event. Historically, Cowen’s analysis reveals that September is traditionally a challenging month for Bitcoin. This insight might hint at a potential downtrend for Bitcoin, which could stretch well into September.
It Boils Down To The Macro Side
According to Cowen, future events related to Bitcoin are likely influenced more by external factors such as global economic conditions (like inflation and employment rates) rather than internal aspects within the cryptocurrency market. In fact, it’s suggested that these external elements may have contributed to the crypto market crash on August 5, as concerns over a potential recession increased.
The U.S. Federal Reserve hasn’t decreased interest rates yet, hoping to lower inflation to the target of 2%. But this reluctance suggests a possible onset of a recession in the American economy.
1. The latest U.S. employment report for July hints at potential concerns among market players, as the jobless rate surpassed predictions. On a broader scale, economic indicators like this have a substantial influence on Bitcoin and the cryptocurrency market because they shape how much capital investors are comfortable allocating to these speculative assets.
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2024-08-11 07:16