Bitcoin ($BTC ) Death Cross Might Be Reversed
Bitcoin is showing signs of recovery as it tests a crucial technical formation that has the potential to change the perception of its recent bearish trends. The market leader may be on the verge of invalidating the death cross, a bearish signal that occurs when the 50-day moving average crosses below the 200-day moving average following weeks of consolidation and erratic trading.
Bitcoin is currently trading just under $85,000 coming close to the 200 EMA at about $87,500 and challenging the 100 EMA. A highly significant intersection for the short- to midterm direction of Bitcoin is suggested by the convergence of moving averages. A clear close above the 200 EMA would indicate a significant death cross reversal and might rekindle optimism on the larger cryptocurrency market.
Despite not exploding, the volume stays constant, suggesting steady accumulation. Bullish but not yet overbought, the Relative Strength Index (RSI) is centered on 52, allowing upward momentum to continue without experiencing immediate exhaustion. This reversal pattern follows several instances in the last month in which Bitcoin was able to maintain the line above the psychological support zone at about $80,000.
Bulls are now able to launch a fresh assault on overhead resistance from that level, which has turned into a dependable base. Bitcoin’s next resistance is probably going to be around $92,000 if it breaks above $87,500 with conviction. Nevertheless, another retracement back toward the $82,000-$80,000 range might occur if the 200 EMA is not broken and held above.
