Bitcoin (BTC) Price Prediction: Is a Death Cross Looming?

Bitcoin's recent price action has shown some concerning signs. The crypto king has failed to break through key resistance levels, leaving it vulnerable to further declines.

Bitcoin (BTC) price has shown some concerning signs recently as it continues to face difficulties breaking through key resistance levels, leaving it vulnerable to further declines.

As the world's leading cryptocurrency edges closer to retesting the $80,000 support, the potential for a Death Cross looms, adding to the bearish sentiment.

In the last few weeks, Short-Term Holders (STHs) have been primarily responsible for the ongoing losses. These investors, known for buying at higher prices, are now exiting positions at a net loss.

In contrast, Long-Term Holders (LTHs), who typically hold coins for longer periods and often at lower prices, are managing to realize some profits. However, despite LTHs' gains, new capital inflows seem to be slowing down.

This lack of fresh capital is impacting the market's ability to generate stronger demand and break through the strong resistance levels that have been preventing Bitcoin's price from soaring higher.

Usually, to maintain a bullish market structure, there needs to be a constant flow of capital fueling the crypto's price rally. However, currently, the market seems to be lacking that crucial support.

Overall, the market sentiment is reflecting a neutral stance as both profit-taking and loss-realization activities appear to be balancing each other out. This signals that neither bullish nor bearish preferences are being overwhelmingly favored by the market participants.

But the crypto king’s macro momentum is showing additional signs of bearish pressure, particularly with the Exponential Moving Averages (EMAs). The 200-day EMA is less than 3% away from crossing the 50-day EMA, which would result in a Death Cross. This technical pattern has historically signaled significant corrections in price, marking a potential end to Bitcoin's 18-month-long Golden Cross.

As the EMAs approach this critical point, traders and investors are closely watching for any signs of a correction. The fear of a Death Cross brings further concern to Bitcoin's price stability. If the 50-day EMA crosses below the 200-day EMA, it could trigger more sell-offs, intensifying the bearish sentiment in the market.

Is BTC Price Primed For Further Decline?

Bitcoin is currently trading at $82,248, moving closer to the key psychological support level of $80,000. After several attempts to breakout, Bitcoin has failed to move beyond the two-month-long broadening descending wedge pattern, which suggests that Bitcoin could be on the brink of further decline.

If the downward momentum persists, Bitcoin is likely to fall through the $80,000 support level and approach $76,741. This scenario would reinforce the bearish outlook, especially considering the technical indicators and the lack of strong buying support. A breakdown below these levels could signal a deeper correction, with the potential for further declines.

However, this short-term bearish thesis can be invalidated if Bitcoin's price manages to reclaim $82,761 as support.

If Bitcoin breaks through the $85,000 barrier, it could breakout out of the current pattern, signaling a potential reversal. A strong rally above $86,822 would suggest a resumption of the bullish trend, invalidating the bearish momentum that currently dominates the market.