Bitcoin forms first ‘death cross’ of 2024 – What’s next?
Last Updated on 12 August 2024 by CryptoTips.eu
Due to last Monday’s ultra-fast Bitcoin crash (which was caused by a sell-off in Asian stock markets), the largest digital coin posted its first ‘death cross’ of 2024 yesterday. A death cross is a technical pattern that usually indicates bearish momentum.
It occurs when the 50-day moving average dips below the 200-day moving average.
🚨 Bitcoin Alert: Death Cross Confirmed 🚨#BTC just confirmed a Death Cross on the daily chart—this is the first occurrence since October 2023. The 50-day moving average has crossed below the 200-day moving average, signaling potential bearish momentum ahead.#Bitcoin #Crypto pic.twitter.com/q2zAgsFBNN
— Tim (@TimaOnX) August 11, 2024
Should we be worried?
Rules
Pension funds and institutional investors who pay attention to such technical signals will receive a warning today that Bitcoin has marked a ‘death cross’, which means that according to their own rules they probably have a few days to decide whether to withdraw their investment (which is probably in a Bitcoin ETF fund) completely, reduce it or leave unchanged.
Unless Bitcoin makes a strong move higher this week, an increase in their investment is unlikely at this point.
It’s a different story for Whales and crypto fans, of course. They interpret a death cross as a lagging indicator and are already looking ahead to the next move up.
The last time Bitcoin posted a death cross on the charts was back in September of 2023. The bearish sentiment was very short-lived, as Bitcoin quickly posted another golden cross in October 2023 and rose over the remaining months of the year.
Analysts noted this weekend that Bitcoin would now need to close above $62,000 for several days this week to reverse the ‘death cross’ effect.
In the past week it only managed to reach that price on Thursday.
