Prominent cryptocurrency analyst Benjamin Cowen has raised alarms for Bitcoin traders about a potentially troubling technical pattern that may lead to a significant price drop. Cowen emphasizes the importance of tracking the latest chart developments.
What is a 'Death Cross' and Why Does it Matter?
The death cross occurs when Bitcoin’s 50-day moving average dips below its 200-day moving average, signaling a bearish trend in technical analysis. Cowen referenced past occurrences in 2019 and 2021, noting they resulted in substantial market corrections. In such scenarios, selling pressure tends to escalate, often triggering panic among traders and exacerbating downward price movements.
Can Bitcoin Maintain Its Market Position?
Cowen has also noted that if Bitcoin’s price falls below $70,000, it could destabilize the broader market framework. A sustained position beneath this threshold could erode investor confidence, leading to increasing uncertainty about future price movements. He cautioned that a drop to approximately $63,000 might significantly impair Bitcoin’s upward trajectory. On a more optimistic note, Cowen believes Bitcoin can maintain its current market position if it stays above the $73,000 mark.
Conclusions and Recommendations for Traders
The analyst recommends traders to be vigilant of potential volatility that may arise with the imminent death cross. Key support levels are identified at $70,000 and $73,000. It's important to avoid emotional decision-making during this period of uncertainty.
Traders are encouraged to exercise caution and remain informed about market developments to navigate the current landscape effectively.
