Bitcoin's Fate Hangs in the Balance: Death Cross Looms as 50-Day EMA Crosses Below 200-Day EMA!

27 Sep 2023 by Crypto Presale 2 min read

Bitcoin has been up and down recently. After breaking the trendline (yellow line) back in August, BTC has retested the trendline from below and currently ranges between $25,000 and $27,000. BTC is down 0.45% in the last 24 hours, after the price fell 3.5% in the last 7 days and then up 0.5% in the last 30 days. This up-and-down movement has been caused by a lot of things. One is that the delay in Spot Bitcoin ETF has caused a lot of uncertainties in the market. Second, some investors are accumulating BTC ahead of the Bitcoin halving happening in 2024. Third, the dollar is gaining strength and has moved up 6% since July.

Technical Analysis

Daily Timeframe

Source: TradingView

In the daily timeframe, the death cross has just formed (crossing over between the 50-day EMA and 200-day EMA). This is a strong bearish formation which signals that BTC might keep trending downward in the short term. Also, the RSI is currently at 44.27%, which means the sellers are dominant in this timeframe. Similarly, BTC is heading towards the neckline of a double top chart pattern; a break below this support around the $25,085 level might mean doom for BTC.

4 Hour Timeframe

Source: TradingView

In the 4-hour timeframe, BTC is in a tight range. A break above the $26,800 zone might reverse the death cross formed on the daily timeframe. However, a break below the $25,000 zone might mean it’s game over for BTC and the $20K level might be the next support zone. Also, the RSI is very low, at 42%, which means the bears are also dominant on this timeframe.

Is it Game Over For Bitcoin?

Right now, BTC is in a tight spot, and it’s too early to decide if it will break above the consolidation or break below. However, there are a series of events that might trigger a rally or crash. One, if the Bitcoin ETF gets approved soon, this might boost investors confidence in BTC, and buyers might step in.

Also, MicroStrategy's purchase of nearly $150 million in Bitcoin has made a significant impact on the cryptocurrency market, leading to noticeable changes in Bitcoin's price behavior. This move shows MicroStrategy's unwavering dedication to Bitcoin and has generated massive interest across the cryptocurrency industry, with many speculating that this purchase could have favourable implications for BTC. Is the game over for Bitcoin? Time will tell!

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