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Bitcoin (BTC) has just formed its first death cross of 2024, a technical pattern that typically indicates bearish momentum. A death cross happens when a short-term moving average, usually the 50-day moving average, crosses below a long-term moving average, such as the 200-day moving average.
In the case of Bitcoin, the 50-day simple moving average (SMA) has crossed below the 200-day SMA, indicating a death cross on its daily charts.
The last time Bitcoin experienced a death cross was in September 2023. However, the bearish sentiment was short-lived, as Bitcoin quickly formed a golden cross in October 2023 — just a month later. A golden cross occurs when the 50-day moving average crosses above the 200-day moving average, indicating a potential upward trend.
This bullish reversal overruled the previous death cross and led to a major price rally, with Bitcoin marking all-time highs near $74,000 in mid-March.
As Bitcoin navigates through its first death cross of 2024, the market is closely watching the BTC price for signs of a potential reversal. Will history repeat itself with the Bitcoin price forming a bottom and hence another golden cross, or will the bearish trend continue?
Bitcoin rebounds past $61,000
At the time of writing, BTC was up 0.82% in the last 24 hours to $61,313 after reaching intraday highs of $61,408. Bitcoin was continuing its rebound that began in Thursday's trading session.
Bitcoin rose behind a rally in global equities on Thursday, momentarily reaching $62,755. The move marked a turnaround after the market experienced its worst loss since the days of FTX's collapse in 2022 in the past week.
On Thursday, Bitcoin experienced its highest one-day rise in more than 16 months. Bitcoin is still somewhat higher, up 1.58% weekly. Traders believe the recent volatility in digital assets is the result of macroeconomic issues as well as forced selling by crypto speculators.
On the upside, Bitcoin's current bounce may require a clear break above the daily moving averages of 50 and 200, which are $61,875 and $62,094, respectively. In this scenario, Bitcoin may reach $70,000.
If this fails to happen, Bitcoin may fall into a consolidation range below the daily moving averages with support near $50,000.