The price of Bitcoin has spent the past few days struggling to recover from a sharp drop below $100,000, a move that rattled traders and briefly pushed the crypto market into one of its weakest phases in many months. Bitcoin prices have been hovering in the mid-$90,000 range since the decline, but the last 24 hours highlighted by a break below $90,000.
Amid this bearish volatility, a new technical perspective from Tony “Bull” Severino suggests that Bitcoin’s next move may be more bullish than the recent weakness implies.
A death cross is formed during a fall in the price of Bitcoin
Tony’s analysis highlights a developing death cross on the daily time frame, where the 50-day moving average is now bending toward the 200-day moving average. The pattern is generally considered bearish, but the position of the moving averages and the slope of the short-term line show something different going on in the Bitcoin chart.
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The green 50-day moving average gradually moved lower after weeks of weakening momentumand the red 200-day moving average started to flatten against the long-term uptrend. As shown in the chart below, this death cross formed around $110,000, and according to the analyst, Bitcoin may reach this price level next week.
The reason a pump remains possible at this stage is directly related to the behavior of moving averages. After falling below $100,000, Bitcoin found support just below $92,000 and has since formed a series of smaller-bodied candles reflecting early stages of a potential turnaround.
If buyers take control, a quick move towards the $103,000-$110,000 region becomes realistic. However, price action over the past 24 hours, which saw Bitcoin break below $90,000, threatens this bullish outlook.
Bitcoin price chart. Source: @TonyTheBullCMT On X
Path to $110,000 this week
For Bitcoin to reach $110,000 in the coming days, the market would have to repeat the pattern seen several times in past cycles: strong relief immediately before or immediately after the formation of the cross of death.
These rallies occur because sentiment becomes overly pessimistic at a time when short prices begin to pile up, leaving the price vulnerable to a sharp upward reaction. However, for that scenario to play out now, Bitcoin would first need to make a convincing return above $90,000 and show it momentum is moving away from the recent selloff.
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Interestingly, other analysts have pointed to bullish rookies for Bitcoin, despite the bearish price action. One such case is Bitcoin SSR RSI, as pointed out by a CryptoQuant community analyst named Maartunn, which shows the growing purchasing power of stablecoins relative to Bitcoin’s market cap.
On the other hand, the bearish indicator rose with the SuperTrend indicator, which suggests a further decline of 67%. in the price of Bitcoin. At the time of writing, Bitcoin is trading at $89,760, down 5.8% in the last 24 hours.
Featured image created using Dall.E, chart from Tradingview.com
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