The price of the largest cryptocurrency, Bitcoin (BTC), has formed a Death Cross formation, which is considered an important bearish formation on the technical side. This formation may indicate a more turbulent period for Bitcoin. The Death Cross formation refers to the short-term moving average of the crypto king falling below the long-term moving average over time, and this movement is considered a bearish signal.
Bitcoin’s Price Forms Death Cross Formation
Bitcoin’s price chart has formed a Death Cross formation as the 50-day short-term moving average has fallen below the 200-day short-term moving average. Steven Ehrlich, the head of research at Forbes Crypto, warned about the formation on his personal X account, saying, “Another Death Cross formation has formed as BTC’s 50-day SMA has crossed the 200-day SMA.”
This situation is supported by the steady decline in liquidity in the cryptocurrency market in recent times. According to the on-chain data platform Glassnode, both on-chain and off-chain volume metrics are reaching historical lows.
Furthermore, the further decline in Bitcoin’s price implies that a significant portion of the supply has incurred unrealized losses. This officially indicates the start of a bear market.
Possibility of a Bull Run in BTC’s Price
Looking at BTC’s current outlook from a positive perspective, the largest cryptocurrency formed a Double Top formation in the past months. The price is currently showing signs of holding above the support level of the Double Top formation.
Crypto analyst and trader Trader Tardigrade stated that if the price remains above the current support level, a significant bull run could occur. According to data provided by cryptocurrency data and price platform CoinMarketCap, Bitcoin is currently trading at $25,636 with a 0.46% decrease in the last 24 hours.
