Bitcoin Closer to Suffer First Weekly Death Cross – This Could Impact the Price of BTC!

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Bitcoin price fell below $23,000 and created a wave of uncertainty in the crypto space. Altcoins that had breached their respective resistance levels fell below levels that could trigger the resumption of a downtrend. Moreover, the crypto star is closer to witnessing a big leap but to the south.

The crypto star is about to witness a death cross in the weekly time frame for the very first time in history and hence the impact is expected on a larger scale. The death cross occurs when the 200-day MA and 50-day MA levels intersect and the 200-day MA levels move towards lower support. Usually, the impact on the daily chart is bearish as the price of BTC drops nearly 7% to 10%.

Currently, the price trend is southward and therefore the 50-day MA levels may cross the 200-day MA to reach the lower support soon.

Commercial view

The death cross is likely to occur in the next week or 2 as the prevailing bearish formations could negatively impact the price. However, the price may still experience a bullish divergence due to the reasons mentioned below,

The price of BTC is up 50% from November lows. Moreover, throughout history, the price has jumped such a big margin every time it tests the 200-week MA level which was the bottom of the cycle. the bottom can be reached. Therefore, a noticeable recovery may be approaching quickly. Currently, the weekly RSI is around 56.52 and therefore a slight dip may mark the bottom of the upcoming cycle beyond which a noticeable rally may be triggered.

Collectively, after hitting lows, the Bitcoin (BTC) price rally could be on and recover the lost levels very soon.

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