The recent death cross on the MVRV Momentum indicator for Bitcoin is sparking discussions among analysts and investors. This indicator may predict changes in Bitcoin's price dynamics.
What is a Death Cross?
A death cross occurs when a short-term moving average crosses above a long-term moving average, indicating bearish momentum. According to crypto analyst Ali, the death cross on the MVRV Momentum indicator signals a potential reversal in macro momentum from positive to negative.
Current Price Situation of Bitcoin
After reaching a record high in mid-August, Bitcoin dropped to its lowest level in nearly seven weeks, testing the $108,670 mark before rebounding. Currently, prices are fluctuating within the critical support range of $109,000 to $112,000.
Future Prospects
Despite recent declines, Bitcoin shows signs of recovery, trading at $112,850 and up 1.34% in the last 24 hours. Key resistance levels for future reference are marked at $113,600 and $115,600.
The death cross on the MVRV Momentum indicator raises concerns among investors about a potential trend change in the market. However, support in the $109,000-$112,000 range may provide an opportunity for price recovery.
