Bitcoin (BTC) Approaches First Death Cross of 2023: Insights from U.Today

Bitcoin on the Brink of a Major "Death Cross" in 2023

Bitcoin, the largest cryptocurrency by market capitalization, appears poised to experience a significant "death cross" in 2023. This bearish chart pattern is expected to emerge on its daily chart for the first time since January 2022. Notably, a similar death cross was previously observed on the weekly chart earlier this year, in February.

The daily chart shows that Bitcoin’s 50-day moving average is on the verge of crossing below its 200-day moving average, which would complete the death cross formation. This situation echoes February’s "golden cross," when the market experienced a surge that pushed prices above $31,000 by April.

Anticipation surrounds the expected death cross, likely to occur in the coming days, possibly next week, prompting analysts to monitor the impending crossover closely. However, it’s important to note that death crosses are not definitive signals; many experts consider them lagging indicators. Historical data reveals that Bitcoin’s death cross has been unreliable when viewed in isolation.

Recently, Bitcoin has seen further declines following the Securities and Exchange Commission’s postponement of its decisions regarding various spot Bitcoin exchange-traded fund applications. The cryptocurrency dropped to a low of $25,528, a level not seen since mid-June, before experiencing a slight rebound. At the time of writing, Bitcoin was down 0.38% over the past 24 hours, trading at $25,595.

Insights from Analysts

According to some analysts, Bitcoin has not yet navigated through the current challenges. Historical patterns indicate that Bitcoin often triggers a bullish rally upon exceeding the average cost basis of holders with a six-month to three-year investment horizon. Presently, Bitcoin remains below the critical breakout level of $33,755.

Another cryptocurrency expert suggests that Bitcoin’s price movements may not necessarily follow the patterns seen in previous cycles. He points out that the fundamental aspects of the Bitcoin halving and block reward reductions are likely to foster a market uptrend over time, despite potential deviations from established trends.