The 50-week simple moving average (SMA) of the world’s largest crypto has now sunken below its 200-week counterpart.
This is the first such technical instance in Bitcoin’s history which began its existence in 2009.
This weekly “death cross” is seen as a bearish signal, suggesting that more price declines are ahead.
It’s also in stark contrast to the “golden cross” on the daily charts when its 50-day SMA crossed above its 200-day counterpart, which we highlighted earlier this month.
Bitcoin hunts for catalyst to punch past $25k
While the daily chart’s “golden cross” and the weekly chart’s “death cross” might be offering up contrasting signals, at least the “death cross” might be the reason for Bitcoin’s recent consolidation around the $25,000 mark.
Amid the swirling uncertainty surrounding broader risk assets, Bitcoin but has so far refused to register a daily close about that psychologically-important $25k level, despite coming tantalisingly close in recent sessions.
It’s also somewhat telling that Bitcoin has been resisted around its 200-week SMA for the time being.
Following that massive leg up on February 15th, perhaps due to a short squeeze, Bitcoin is now bidding its time amid an apparent indecision for the direction of its next big move.
Bitcoin set for immediate pullback?
Amid the perceived struggles to overcome the $25k hurdle, another technical indicator may signal a near-term pullback.
Bitcoin’s 14-day relative strength index (RSI) has now touched the 70 threshold which marks “overbought” territory.
Although it’s jarringly notable that the 14-day RSI surged past 90, well into overbought territory, during Bitcoin’s stellar start to the year without a notable pullback.
Bitcoin bulls will be hoping that this period of consolidation around $25k would actually set a stronger base for its next leg up, rather than first needing a technical pullback.
Crypto fallout still reverberates through sector
Casting our sights away from the charts for a bit, the woes in this highly-speculative sector are still evident, and we have been documenting some of these headlines in this weekly crypto article.
Here are just some of the latest ones:
Despite such worrisome developments, at least Bitcoin’s demonstrated ability of late to hold firm around the $25k mark, along with its year-to-date surge of more than 50%, indicates that crypto has so far been able to weather such negative headlines surrounding the sector.
Perhaps of more immediate concern for Bitcoin bulls, they must also look past that weekly “death cross” and the flashing “overbought” indicator to secure a meaningful and sustained presence above $25k.
Such an achievement over the immediate term might even be the required catalyst for Bitcoin’s next leg up.
The world’s largest digital coin is holding up relatively well, despite the latest salvos against the crypto world.
28 March 12:10
The world’s largest crypto by market cap is taking a healthy pause after briefly breaching the $28,000 mark, though still holding around its highest levels since June 2022. Bitcoin’s year-to-date gains soared by as much as 72% before paring such advances to 67% at the time of writing.
21 March 10:55
Amid the ongoing SVB saga and the fears engulfing the traditional US financial system, Bitcoin is advancing for a fourth consecutive day, surging past its 50-day simple moving average (SMA) to come within touching distance of the psychologically-important $25k line.
14 March 11:19
At the time of writing, the value of the world’s largest crypto has fallen by about 2.9% so far this month. Bitcoin is now limping along, barely keeping its head above the psychologically-important $22,000 mark for the time being.
7 March 09:54
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