bullish

Bitcoin

when

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The potential formation of a death cross, an indicator that hints at a possible bearish reversal when a short-term moving average crosses below a long-term moving average, puts <a href="https://u.today/1-million-bitcoin-price-prediction-dangerous-samson-mow-responds" rel="noopener noreferrer nofollow">Bitcoin</a> at a critical level.&nbsp;
The 50-day and 200-day moving averages of Bitcoin are progressively convergent, as the chart illustrates, which raises questions about the asset's potential price movements. Because it typically indicates impending downward pressure, a death cross frequently causes traders to exercise increased caution. This pattern indicates that Bitcoin may be about to enter a prolonged bear market.&nbsp; <img alt="BTCUSDT" data-entity-type="file" data-entity-uuid="cc462625-d652-4ca9-8ab9-68d00fcca520" src="https://u.today/sites/default/files/inline-images/image_1191.png"><a href="https://www.tradingview.com/" rel="noopener noreferrer nofollow">BTC/USDT Chart by TradingView</a>
Nevertheless, it is important to consider the larger market environment because death crosses do not always result in appreciable price drops. As of right now, the price of <a href="https://u.today/ethereum-eth-paints-grim-reversal-pattern-solana-sol-whales-not-bullish-bitcoin-btc-enters-60000" rel="noopener noreferrer nofollow">Bitcoin</a> is hovering around $56,000. In the near future, it will be important to monitor a few key price levels.&nbsp;
To prevent additional losses, the asset needs to maintain the $58,000 support level as the first target. This is the next major support level, and if <a href="https://u.today/xrp-could-be-on-verge-of-huge-squeeze-against-bitcoin-coinbase-announces-new-listing-binance-xrp" rel="noopener noreferrer nofollow">BTC</a> breaks below it, it will find stability again at $54,000. For a more bullish trajectory to continue, Bitcoin must rise above the resistance at $60,000.&nbsp;
On-chain data also points to conflicting signals. On-chain metrics like net network growth and large transactions remain neutral, indicating that there is not a clear trend in Bitcoin's current state. In contrast, exchange signals are primarily neutral to bullish. The fact that investors are not currently making a strong investment in the asset, as indicated by the exchange's negative netflows, may indicate that the market is feeling cautious.&nbsp;
With neutral on-chain data and the potential for a death cross, Bitcoin's immediate price action is unpredictable. Although there may be a short-term downside risk associated with the death cross, Bitcoin has a history of resilience and has recovered from similar circumstances in the past.

Bitcoin (BTC) Death Cross Imminent? Price Makes Risky Moves

U_Today

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