Benjamin Cowen drew the attention of the crypto community to an important technical indicator on the weekly Bitcoin chart, known as the “death cross”. This pattern is seen when a short-term moving average such as the 50-week moving average falls below a long-term moving average such as the 200-week.
From a financial point of view, this is considered a bearish signal indicating a possible trend reversal and an extended downtrend.. The death cross is often seen as a sign of prevailing negative market sentiment, which could lead to a significant decline in the price of an asset.
And there it is – the first weekly death cross for #BTC pic.twitter.com/Ana9VkuWl0
— Benjamin Cowen (@intocryptoverse) February 13, 2023
The Death Cross is just one of many popular technical indicators used by traders and analysts to make investment decisions.. While the indicator provides some information about the prevailing market sentiment, it does not guarantee investors market outcomes.. In theory, the indicators warn traders to be careful, and long-term investors may consider the potential sale of their assets.
Despite recovering in January, Bitcoin failed to maintain momentum and reversed direction two days ago, dropping to the $21,000 support level and gaining ground on the 200-day moving average.. This could be a sign of a bigger trend reversal for the top cryptocurrency. Currently, BTC is trading at $21,747, having lost about 5% of its value over the past 7 days.
Previously, Benjamin Cowan gave his forecast regarding fluctuations in the value of bitcoin. The analyst expects the growth of the BTC rate by the end of this year, closer to the next halving.