2024

Value

Bitcoin

Billion

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin is nearing a ‘death cross’, a bearish trading indicator, but past trends suggest a recovery is possible.</li> 
 <li>Despite a recent rebound, Bitcoin’s price is still down around 22.2% from its all-time high in March.</li> 
</ul>  
<p>Bitcoin is inching closer to a ‘death cross’, a phenomenon in trading where the 50-day moving average falls below the 200-day moving average, usually a bearish sign. </p> 
<p>Historically, Bitcoin has faced similar patterns. In March 2020 and June 2021, a death cross was followed by a significant rally to record levels. </p> 
<h2 id="death-cross-looms-over-bitcoin">Death Cross Looms Over Bitcoin</h2> 
<p>Bitcoin’s short-term gains have not been sustained above its long-term gains, leading to the emergence of this pattern. </p> 
<p>However, if past trends hold true, Bitcoin might be on the brink of an upside breakout. </p> 
<p>A prominent crypto enthusiast known as ‘walltreetbets’ has pointed out a pattern in Bitcoin’s chart that mirrors the one seen in 2020, when Bitcoin rebounded sharply from below $5,000 to over $20,000 after a similar pattern. </p> 
<p>According to Wallstreetbets, the 2024 chart suggests a similar trend. </p> 
<h2 id="fundamental-outlook">Fundamental Outlook</h2> 
<p>Looking beyond technical analysis, Bitcoin’s fundamentals also offer insight into its potential future direction. </p> 
<p>Bitcoin’s Market Value to Realized Value (MVRV) ratio, which measures the discrepancy between market price and actual value, was 1.79 at press time, suggesting that Bitcoin was undervalued. </p> 
<p>In addition, Bitcoin’s Open Interest, representing the total number of outstanding derivative contracts yet to be settled, rose by 3.81% in the past 24 hours to $28.24 billion. </p> 
<p>However, the Open Interest volume saw a significant decline of 48%, standing at $80.12 Billion at press time, indicating a shift in trader sentiment or a cooling off in market momentum. </p>

Bitcoin Braces for Death Cross: Is a Market Storm Brewing?

Table of Contents

CoinEagle.com

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