Bitcoin Flashes A Bearish "Death Cross" Signal, Will BTC Price Plunge?

A bearish "death cross" signal, in which the short-term moving average crosses below the long-term moving average, has flashed on Bitcoin's hourly chart, sparking speculation on BTC's short-term price trajectory.

A bearish "death cross" signal has appeared on the Bitcoin (BTC) hourly chart, signaling the short-term moving average has crossed below the long-term moving average. This technical development has flashed an interesting short-term signal, which has sparked some chatter among crypto traders on what it could mean for BTC’s price.

Bitcoin (BTC) reacts to hourly 'death cross' formation

The hourly relative strength index (RSI) moved into oversold territory after notching two hourly red candles. As of the time of writing, BTC was up 0.94% over the last 24 hours to $103,850, as the broader crypto market recovered slightly following yesterday's drop.

Bitcoin price continues to consolidate within a relatively tight range between $100,703 and $105,787. The sideways movement shows that the market is still uncertain, with bulls and bears in a deadlock.

While death crosses typically hint at potential downside, especially on higher time frames, the hourly version often signals short-term weakness rather than a significant trend shift. Traders will now be looking for a confirmed breakout above or below the current range to determine BTC’s next move.

What's next for BTC price?

Bitcoin has been consolidating within a range for the last few days (since May 9), suggesting a balance between supply and demand. The BTC price has remained above the psychologically important $100,000 barrier, indicating that the bulls are holding onto their positions as they anticipate another move higher.

A break above $105,787 may reignite bullish momentum. If this happens, Bitcoin may target $120,000, as some analysts forecast.

However, the sustained inability to push the price above the all-time high of $109,114 may induce short-term buyers to realize their profits, putting the $100,000 support at risk of failure. A drop below the present support zone of $100,703 may set the stage for a deeper correction.