Bitcoin (BTC) Forms Death Cross, But Will History Repeat Itself?

Bitcoin (BTC) has just formed its first death cross of 2024, a technical pattern that typically indicates bearish momentum.

Bitcoin (BTC) price formed its first death cross of 2024 on Monday, a technical pattern that usually indicates bearish momentum.

A death cross occurs when a short-term moving average, typically 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. But 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

BTC was trading up 0.82% in the past 24 hours to $61,313 at the last check, after hitting 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, briefly hitting highs of $62,755. The move marked a recovery after the market incurred its worst loss in a single week since the days of FTX's 2022 collapse.

On Thursday, Bitcoin clocked its largest single-day gain in over 16 months. Bitcoin is still trading higher by 1.58% on the week. According to traders, the recent volatility in digital assets is being driven by both macroeconomic cues and distressed selling by crypto speculators.

On the upside, Bitcoin's immediate bounce may need to clear the 50 and 200 daily moving averages, currently at $61,875 and $62,094, respectively. In such a case, Bitcoin could be eyeing the $70,000 price zone.

Failure to do so could see Bitcoin consolidate in a range below the daily moving averages with support seen around the $50,000 level.