u.today
There was an incident this week, on Monday to be precise, when the 23-day moving average on the Bitcoin price chart crossed down the 200-day curve, forming what is known as a "death cross" pattern. What is expected after this technical analysis formation with an ominous name is a decline.
However, and unexpected, the Bitcoin price after the emergence of the death cross has risen by 3.8% in less than three days, and to the current moment is quoted at above $88,000. It may be too early to call this the invalidation of the bearish pattern.
Bitcoin has ascended above both 200-day and 23-day moving averages and is currently trading toward the 50-day one, which is also declining.
If one tries to consider a hypothetical scenario, the cryptocurrency would continue soaring until the 50-day curve crosses below the 200-day one. This will form another death cross, and it seems inevitable and may be a sign of a decline that the relevant pattern failed to provide.
But until then, Bitcoin may continue to soar right to $89,700, where both the 50-day moving average and the crucial price resistance level are located. Until the current situation is resolved, the death cross the market saw on Monday may remain invalidated, but it is still worth keeping in mind.
Yes, one single indicator on a crypto market is too little to tell the future. However, when there are too many signals like this death cross, especially on large time frames, that is when the probabilities start changing.