Bitcoin (BTC/USD) Is Approaching Another 'Death Cross,' Warns IntoTheCryptoverse Founder

In a podcast published on Friday, Cowen said that Bitcoin will "likely have another death cross," meaning the 50-day simple moving average crossing below the 200-day simple moving average

Benjamin Cowen, known for his insights on IntoTheCryptoverse, has raised an alarm about Bitcoin's (BTC/USD) potential approach toward another "death cross."

What Happened: During a podcast episode on Friday, Cowen discussed the possibility of the 50-day simple moving average falling below the 200-day simple moving average for Bitcoin.

"If nothing changes in the next one to two weeks, then Bitcoin will likely have another death cross," he remarked.

This would mark Bitcoin's third death cross in the current cycle, following September 2023 and August 2024.

These occurrences, which involve the 50-day SMA crossing under the 200-day SMA, are often associated with short-term sell-offs in the market. However, they have historically been followed by substantial rallies in the cryptocurrency.

"What normally happens is Bitcoin goes into some longer-drawn-out periods where the price trends down ... and then it leads to these moving averages converging back together," Cowen explained.

He further noted that "just before it and then when it happens everyone starts screaming the death cross is here and then what normally happens after the death cross is the market then gets a rally."

What's Next: As for critical support levels, Cowen highlighted $73,000 as a key area to observe.

"If in the next pullback ... it holds above $73,000, then there's no guarantee with the market but it would suggest that the structure of the market remains intact," he stated.

This pattern is similar to what occurred in 2017, where Bitcoin tested its prior yearly high before continuing its ascent.

Bitcoin is currently trading at $83,700, down 4% over the past 24 hours.