Bitcoin currently trades at $21,829, marginally up in the last 24 hours. The weekly moving average (MA) 50 and weekly MA 200 of the cryptocurrency Bitcoin have converged, signaling an extremely rare occurrence on the price chart. In a week or two, the weekly MA 50 appears ready to confirm the bearish death cross by crossing below the MA 200 for the first time. The emergence of a death cross on Bitcoin’s weekly chart is unusual, therefore it can be worrying. However, given that the majority of the sell-off may have happened before the crossover, some experts think the indication is based on backward-looking moving averages. The death cross, which is the antithesis of the golden cross, may indicate a prolonged down market. This makes sense given that 2022 was a challenging year for cryptocurrencies, as evidenced by falling prices. Bitcoin fell nearly 67% from its all-time high of nearly $69,000 reached in November 2022.
Key Levels
Resistance Levels: $27,000, $25,000, $22,000
Support Levels: $21,500, $19,500, $17,500
BTC/USD Daily ChartBitcoin (BTC) bears might lose momentum, and even though more declines are not ruled out based on the daily chart, BTC is unlikely to be able to retain a foothold below the significant support at the $21,500 level due to its golden cross conditions. A breach of the $22,000 level would signify the present weakness has steadied to the upside.
The outlook for BTC is still that of consolidation, and further declines to $20,000 are not unexpected. A clear violation of the $21,500 level further out could shift focus to the $20,000 low level. Only a break of the medium-term resistance level at $25,000 could indicate that the current BTC negative phase has eased. The pair hit a low of $21,605 and is now trading around 21,671, up 0.25% on the day.
BTC/USD 4-Hour ChartEarlier, the BTC/USD fell below the $21,500 support level, and it has since reversed. The $21,500 marks were followed by a bounce at the $21,467 low level. Because the indicated support levels have held the bearish run, the BTC/USD pair could recover and test the $22,800 resistance level.
At the time, paying close attention to the bottoming signal at the current low level of $21,467 is critical. The break of $22,000 support turned resistance may indicate a short-term bottom and shift the bias to the upside. A convincing breach of the $21,500 level, on the other hand, may extend the fall to a retracement of $22,500 to $20,000 at $21,500 levels.
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