Bitcoin (BTC) Price Faces Weekly Death Cross: Will $24k Be the New Support Level?

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Bitcoin (BTC) price has been trading within the range of $25.6k to $26.1k, leading to increased short-term uncertainties. Grayscale Investments’ influence on crypto volatility has waned, notably after the U.S. SEC postponed the approval of several Bitcoin ETFs. However, Grayscale Investments’ legal team has urged the SEC to expedite spot Bitcoin ETF approval, citing a lack of grounds for delay.

Analyst Perspectives on Short-Term Bitcoin Price Movements

Crypto Tony, a prominent digital assets analyst, anticipates a potential dip to $25k for Bitcoin in the near future, followed by a temporary support level and a rebound to $28.5k. Daan Crypto Trades, another well-known digital asset investor and analyst, agrees that Bitcoin is poised for high volatility in the short term, irrespective of current uncertainties.

Key Factors Supporting a Short-Term Bearish Outlook

Bitcoin is facing significant pressure due to the occurrence of a weekly death cross between the 50 and 200 Moving Averages (MA). The past three weeks have seen Bitcoin close below the 200 weekly Moving Average, indicating a potential drop below $24k as the coin seeks to establish robust macro bullish support. Additionally, on-chain analysis by James V. Straten reveals that Bitcoin’s open interest, a metric gauging institutional investor demand, has reached its lowest point this year.