Bitcoin Death Cross Approaching – BTC Price at Critical Juncture between Bulls and Bears

The post Bitcoin Death Cross Approaching – BTC Price at Critical Juncture between Bulls and Bears appeared first on Coinpedia Fintech News

The Bitcoin price has continued trading around $23k in the past few days as the bullish thesis gradually lost steam. The neutral standpoint has crypto traders patiently waiting for a breakout on either side. 

Having rejected $24k in the past week, the next few weeks shall prove to be extremely decisive for the Bitcoin market in the coming quarters to map out how it will perform in the future. Furthermore, the 50 and 200 WMA are close to a death cross, which could mean more declines where in the short-term traders and miners have been identified as offloading their bags.

According to aggregate data provided by Coinglass, approximately $56.9 million has been liquidated in the crypto market over the past 24 hours. While liquidations happen all the time due to the increase in crypto derivatives trading, a possible short squeeze could push Bitcoin prices higher in the coming months.

Notably, on-chain data shows an increase in crypto traders’ optimism following a 40 percent pump in January.

Bitcoin: Price Analysis & Market Outlook 

The Bitcoin market has managed to trade above pre-FTX levels for more than two weeks consecutively. With crypto traders’ confidence regained, the next hurdle is dealing with an incoming death cross. On the weekly timeframe, the 50 and 200 MA are separated by a margin of less than $10k. Should the 50 and 200 WMA cross, it will be the first time that the two have turned resistant levels since Bitcoin’s inception.

On the other hand, a golden cross is about to happened on the daily chart, which encompasses the 50 and 200 DMA.

Side Notes 

Bitcoin’s price has managed to maintain $23k in the past week despite the high-impact news from the United States Fed. However, the bulls have shown signs of weakening with a possible reversal in the coming weeks.

“Bitcoin continues to lose its momentum after the stronger-than-expected January jobs report forced the market to prepare for two more rate hikes,” said Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank.