Bitcoin’s new death cross will ensure a continuation of the bear market unless a “major bullish catalyst” emerges, according to new BTC price analysis.
The latest analysis says Bitcoin (BTC) needs a “major bullish catalyst” to avoid undoing its March rally.
Main points:
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The new findings warn that BTC’s short-term price strength will not eliminate the risk of a continued bear market.
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Bitcoin faces a lot of additional resistance in the mid-$70,000 area.
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The “Death Cross”, formed by two weekly trend lines, is still confirmed this week.
BTC price has been caught between multiple trend lines
In an X update on Wednesday, Keith Alan, co-founder of stock trading Material Indicators, warned that BTC price weakness still exists beyond the short time frame.
Bitcoin hit a monthly high of $73,019 on Wall Street’s opening day, continuing a rebound that accompanied the new conflict in the Middle East.
Although this quickly led to predictions of a bull market return and even higher highs, Alan was candid about BTC’s price outlook.
“This is an important candle to watch on the $BTC chart,” he said.
“On the surface, we see short compression. Technically, this D candle is trying to confirm the R/S Flips at the 21-day SMA, Top 2021 at $69k and Timescape level at $71.3k.”
Alan pointed to various key levels near the spot price, including the 21-day simple moving average (SMA) of around $67,550, per data from TradingView.
Also on the radar was the 50-day SMA at $76,350, along with the 21-week and 100-day SMA trendlines at $88,000 and $87,300, respectively.
“If the bull can push the price up from here, I expect to see psychological resistance around ~$75k, technical resistance at $50-day MA and the next Timescape level at $78.3k,” he said.
“A test of support, later, would be healthy, but I’m not sure the market will make it that easy for us. However this develops, IMO, the longer it goes, the more durable the rally will be.”
Bitcoin Death Cross still has these weekly candles
As Cointelegraph reported, long-term price expectations support the current bear market below or below $50,000.
related to: ‘This Is Not World War III:’ Five Things to Know in Bitcoin This Week
A bearish reversal in BTC price, Alan warned, could happen as soon as possible thanks to the so-called “death cross” involving the 21-week and 100-week SMAs.
A death cross occurs when the previous trend line crosses the last low, which is weaker than the long-term price trend.
“The warning is for the simple fact that next week we will print a death cross between the 21 and 100 Week MA and this will likely be a precursor to the next leg unless we get a major bullish catalyst,” he said.
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