A new Bitcoin death cross would ensure continuation of the bear market unless a “major bullish catalyst” appears, per new BTC price analysis.
Bitcoin (BTC) needs a “major bullish catalyst” to avoid canceling out its March rally, says the latest analysis.
Key points:
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New findings warn that short-term BTC price strength does not remove the risk of the bear market continuing.
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Bitcoin faces plenty of overhead resistance in the mid-$70,000 zone.
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A “death cross” formed of two weekly trend lines is still on course to confirm this week.
BTC price caught between multiple trend lines
In an X update on Wednesday, Keith Alan, cofounder of trading resource Material Indicators, warned that BTC price weakness was still present beyond low time frames.
BTC/USD one-hour chart. Source: Cointelegraph/TradingViewBitcoin hit monthly highs of $73,019 at the day’s Wall Street open, continuing a rebound that accompanied renewed conflict in the Middle East.
While this quickly led to predictions of a bull market comeback and even new all-time highs, Alan was frank about the BTC price outlook.
“This is an important candle to watch on the $BTC chart,” he summarized.
BTC/USD one-day chart. Source: Cointelegraph/TradingViewAlan referred to various key levels near the spot price, including the 21-day simple moving average (SMA) at around $67,550, per data from TradingView.
Also on the radar were the 50-day SMA at $76,350, along with the 21-week and 100-day SMA trend lines at $88,000 and $87,300, respectively.
“If bulls can push price up from here I expect some friction around psychological resistance ~$75k, technical resistance at the $50-Day MA, and the next Timescape Level at $78.3k,” he continued.
Bitcoin death cross still due this weekly candle
As Cointelegraph reported, long-term price expectations for the current bear market favor a bottom at or below the $50,000 mark.
Related: ‘This is not World War III:’ Five things to know in Bitcoin this week
A return to BTC price downside, Alan warned, could come as soon as next week, thanks to a so-called “death cross” involving the 21-week and 100-week SMAs.
BTC/USD one-week chart with 21, 100 SMA. Source: Cointelegraph/TradingViewA death cross occurs when the former trend line crosses below the latter, implying weaker recent price action compared to the longer-term trend.
“The caveat to that is the simple fact that next week we will print a death cross between the 21 and 100 Week MAs, and that will likely be a precursor to the next leg down unless we get a major bullish catalyst,” he concluded.
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Source: https://cointelegraph.com/news/bitcoin-still-due-next-leg-down-72k-btc-price-precedes-death-cross?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
