Originally published on: August 09, 2024
In the world of Bitcoin, a critical moment looms as the cryptocurrency faces the threat of a dreaded “death cross.” However, all hope is not lost as analysts suggest that if Bitcoin can rise above the $62,000 mark and hold it as support, the worst consequences can be avoided.
Renowned trader Benjamin Cowen recently shared his insights, indicating that Bitcoin’s price trajectory may change for the better if it manages to flip $62,000 to support. The ominous “death cross” scenario involves the 50-day simple moving average crossing below the 200-day equivalent, signaling a potential downturn in Bitcoin’s price.
While history has shown mixed results after previous death crosses, with 2023 seeing a rally post-cross and 2019, 2021, and 2022 facing losses, the current situation remains uncertain. Cowen emphasized the importance of Bitcoin surpassing and maintaining the $62,000 level to prevent further downside.
In the midst of these fluctuations, Bitcoin’s price showed signs of recovery, briefly hitting $62,775 before settling at a slightly lower level. Market observers noted a lack of significant rebound in futures market open interest, suggesting that the recent price increase was driven by shorts covering their positions.
As the crypto market continues to evolve, it is essential for investors to stay vigilant and conduct their own research before making any investment decisions. With Bitcoin on the edge of a pivotal moment, the future remains uncertain, but potential opportunities and risks abound.
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