Cryptanalyst Colin discovered it the price of Bitcoin flashed the death cross, which he noted was positive for the leading cryptocurrency. This comes amid BTC’s recent decline, which has erased all of its year-to-date (YTD) gains.
Bitcoin price is flashing a death cross, marking a potential bottom
In an X postColin stated that the death cross had just flashed for the price of Bitcoin, with the “ironically” bullish indicator activating at the same time BTC marked the bottom of its megaphone pattern. The analyst noted that this is a bullish setup from this point forward, as the death cross often marks a bottom. He indicated that this is likely the bottom, as BTC finished at the lower end megaphone sample channel.
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Colin noted that these factors combine to indicate a high likelihood of Bitcoin’s price rising from current levels. He added that a rebound is likely in the short term. However, the analyst noted that the bigger question is whether this would be a rebound to new all-time highs (ATHs) or just a recovery on the way down bear market. Regardless of what happens, he is optimistic that an upward shift will occur in the short term.
Colin also alluded to the fact that the Federal Reserve will end quantitative tightening (QT) by December, a move he described as another bullish catalyst for Bitcoin’s price. The move is expected to inject more liquidity into BTC and possibly push prices higher for the leading cryptocurrency. The Fed could also cut rates again at the December FOMC meeting, which would be a catalyst for growth for Bitcoin.
Another analyst confirms Death Cross
Popular crypto analyst Benjamin Cowen also confirmed that the price of Bitcoin just had a death cross. He noted that previous death crosses marked local declines in the market. However, he added that the death rally fails when the cycle ends, which could be the case this time if bull market it’s over.
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Cowen stated that it is time to the price of Bitcoin bounce if the cycle is not finished it would start within the next week. The analyst further noted that if a bounce does not occur within a week, another decline is likely before a larger rally back to the 200D SMA, which he argued will mark a macro lower high. Meanwhile, the market analyst Subu Trade shares data on how BTC reacted after historical death crosses. The last death cross occurred in April of this year, and the leading cryptocurrency saw a 22% increase after that.
At the time of writing, the price of Bitcoin was trading at around $95,100, a decline over the past 24 hours, according to data from CoinMarketCap.
Featured image from Pngtree, chart from Tradingview.com
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