- Bitcoin (BTC) has defied the bearish “death cross” signal, surging 3.8% to trade above $88,000.
- If it breaks the 50-day moving average near $89,700, further gains are possible, but another death cross could still emerge.
Bitcoin (BTC), the world’s largest cryptocurrency, has defied a major bearish signal, sparking renewed optimism among traders. Earlier this week, a technical pattern known as the “death cross” formed on Bitcoin’s price chart, typically signaling a potential decline. However, BTC has done the unexpected—surging by 3.8% in less than three days and currently trading above $88,000.
Breaking the Bearish Trend
A death cross occurs when a short-term moving average, in this case, the 23-day MA, crosses below a long-term moving average, such as the 200-day MA. Traditionally, this is seen as a precursor to a downturn, reflecting weakening momentum. However, Bitcoin’s price has bucked the trend, climbing above both the 23-day and 200-day MAs. It is now approaching the 50-day moving average, a key resistance level at around $89,700.
What’s Next for Bitcoin?
If Bitcoin continues its upward trajectory and breaks through the 50-day MA, it could signal further bullish momentum. However, traders should remain cautious. If the 50-day MA crosses below the 200-day MA in the coming weeks, it could trigger another death cross, potentially leading to a more sustained downtrend.
Despite the technical indicators, Bitcoin’s resilience highlights the complexity of the crypto market. Single indicators do not dictate absolute outcomes, and other fundamental factors—such as institutional investment, regulatory developments, and macroeconomic trends—will play a crucial role in determining BTC’s next move.
For now, the death cross has been invalidated, and Bitcoin’s rally has kept the bulls in control. However, traders should remain vigilant as the market navigates this critical phase.
