Recently, the price of Bitcoin (BTC) has experienced a significant decline, dropping more than 8% in the last 30 days. This decrease coincided with a decrease in enthusiasm for the launch of a Bitcoin spot ETF in the U.S., indicating a correlation between market sentiment and BTC price fluctuations.

According to a report from Crypto Globe, a popular analyst named Ali Martinez has identified a concerning pattern on the 12-hour Bitcoin chart known as a death cross. This pattern occurs when the short-term MA indicator falls below the long-term MA, in this case, the MA 50 has dropped below the MA 100. Generally, a death cross is seen as an indicator of potential price decline.

Although the name sounds ominous, historical data from sources like Investopedia suggest that a death cross may not always spell disaster for Bitcoin. In fact, this pattern tends to be followed by a short-term rebound that can result in above-average returns.

Martinez also highlighted a red candlestick 9 from TD Sequential, indicating strong sell signals that could affect market action if the BTC price falls below the critical support of US$63,300.

Long-Term Optimism

In contrast, there is still strong optimism about Bitcoin's long-term value. Many analysts believe that despite the current bearish trend, Bitcoin is poised for significant price increases.

This duality of opinion reflects the highly speculative nature of crypto investments, where market sentiment can change rapidly, often in response to global economic factors, regulatory news, or technological developments.

Despite more optimistic assessments, other indicators suggest that Bitcoin may have entered a bullish phase. This assessment is based on the observation that the BTC price has nearly surpassed its 200-day SMA indicator, a key metric for identifying long-term market trends. Movements like this are typically interpreted as strong bullish momentum indicators.

Historical patterns support this optimistic view. For example, after the 200-day SMA crossed above the previous peak in early November 2020, six months after the third Bitcoin halving, the BTC price surged spectacularly.

By mid-April 2021, it had multiplied several times over, highlighting the cyclical dynamics of this digital asset market. Similar trends were observed after the second halving in December 2016, where Bitcoin surged by 2,000% in the following year. The dramatic post-halving uptrend cycle is worth noting and is a pattern closely monitored by savvy investors.

New Highest Predictions

Adding to the bullish outlook, a renowned analyst in the crypto space, who previously pinpointed the market low during the bear market in 2018, recently predicted that Bitcoin is likely to reach a new all-time high soon.

According to their analysis, Bitcoin could rise to around US$120,000 in this cycle, following the wave they identified as the fifth phase of a larger trend.

However, not all market observers are convinced by this optimistic scenario. A recent report from Fidelity Digital Assets argues that Bitcoin is no longer undervalued but is actually trading at what they consider to be its fair value. This assessment indicates a more conservative view of Bitcoin's short-term price potential, which is starkly different from bullish predictions.