Bitcoin managed to rise to $86,000 on Tuesday, April 15, cautiously returning to positive sentiment. Nevertheless, according to Marie Poteriaieva, we should remain cautious, as a death cross is also looming over the Bitcoin market.
And that usually means bad news for the digital currency. Should bulls be worried? Will the Bitcoin price fall sharply again?
Death Cross Threatens Bitcoin
On April 6, the Bitcoin price formed a death cross on the daily chart. This is a technical pattern in which the 50-day moving average falls below the 200-day moving average.
Historically, this indicates trend reversals, followed by a longer period of price declines.
This time, we saw a death cross at a time when macroeconomic uncertainty was at its peak. The US stock market is also under severe pressure due to Donald Trump’s trade war, while volatility is rising and fear is the dominant sentiment among investors.
Although a death cross is considered negative in the books, the Bitcoin price doesn’t necessarily have to be going through a bad period. Over the years, Bitcoin has experienced a death cross 10 times, and we’re now on the 11th.
In some cases, the Bitcoin price didn’t fall at all after a death cross, and we even saw a subsequent price increase.
A long period of decline imminent?
CryptoQuant CEO Ki Young Ju was already negative about the Bitcoin price before we saw the death cross. Based on his indicators, he expected a weak period of 6 to 12 months for the Bitcoin price.
On April 5, he reported that the bull cycle for Bitcoin was over. Why? Because he saw several negative signals for the digital currency in his analyses.
However, he only looked at the Bitcoin market and didn’t take the macroeconomic and geopolitical situation into account. From there, the market has to deal with a great deal of uncertainty.
That’s where investors’ main hope currently lies. If there’s a solution to the uncertainty, market sentiment could quickly turn around.
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