With Bitcoin’s price climbing back above $87,000, cautious optimism is returning to the market. However, a technical signal looms over the market like a sword of Damocles: the ‘death cross,’ a pattern that gives many traders nightmares. Which way is Bitcoin headed?
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Can Bitcoin Climb Higher? #
The price is currently moving below the $90,000 level, which many analysts see as a psychological threshold. Nevertheless, the first glimmers of hope are reappearing. On shorter timeframes, analyst BitBull notes that Bitcoin has, for the first time in weeks, closed above the 4-hour SMA (Simple Moving Average) 20, an average often used to determine if the short-term trend is shifting.
In a post on X (formerly Twitter), BitBull stated, “Bitcoin has reclaimed the 4H SMA-20 for the first time in 2 weeks. On the shorter timeframe, $BTC is looking good now.” He added that a weekly close above approximately $92,000 could create enough momentum for a larger rally, potentially towards the $105,000 to $110,000 range.
Other analysts are looking at the bigger picture. They are seeing signals typically associated with a market trying to form a bottom. Michaël van de Poppe, for example, pointed to the recent three-day candle, which he says strongly resembles patterns seen after previous panic moments, such as during the FTX implosion. In such a scenario, the price stabilizes for a few days before creating room for a gradual climb. His expectation is that Bitcoin could continue to move in a range between $90,000 and $96,000 in the coming week.
Death Cross Keeps Market on Edge #
Despite the optimism, the recent ‘death cross’—a signal often preceding a price drop—continues to haunt the minds of traders. A death cross occurs when the 50-day and 200-day moving averages (MAs) cross each other in a downward direction. When the 50-day MA drops below the 200-day MA, analysts call it a death cross. However, it is not a certainty that a price decline will follow. The last time a death cross appeared on the Bitcoin chart, the price recovered almost immediately.
Market analyst Benjamin Cowen calls this a crucial turning point. According to him, Bitcoin really needs to show a recovery this week. If that doesn’t happen, the price could sink further before any recovery materializes. That recovery would then likely stall around the $110,000 level, and if that happens, it would be more indicative of a weak market than a true bull run.