Bitcoin forms a Death Cross: Drop to $74,000 before rising to $200,000?

Recently, the price action of Bitcoin (BTC) has recorded the appearance of the Death Cross pattern on the chart – an important technical signal that often indicates a period of high volatility in the market.

The Death Cross forms when the 50-day moving average (MA 50) crosses below the 200-day moving average (MA 200). Historically, this pattern has often been associated with significant price corrections, leading analysts to predict that Bitcoin could drop to around 74,000 USD before having a chance to recover and advance towards the 200,000 USD threshold.

Death Cross: Negative Signal or Stepping Stone for Recovery?

The Death Cross is seen as a bearish signal, reflecting the weakening of short-term momentum compared to the long-term trend. In the past, this pattern has appeared multiple times, notably in the years 2019, 2021, and 2022 – periods that witnessed significant fluctuations of Bitcoin.

! Bitcoin Forms Death CrossSource: Social Currently, the arrival of Death Cross is making traders more cautious. While this is usually a sign that the bearish trend may continue, it does not mean a prolonged decline. In fact, Bitcoin has shown strong resilience after similar signals, when prices often bounce up significantly after correction periods.

Can Bitcoin reach 200,000 USD?

Analyst TedPillows stated that before entering a new growth cycle, the market may adjust to the level of 74,000 USD. He also pointed out the formation of a "bearish wedge" pattern on the price chart – an indicator suggesting a short-term downtrend, but the potential for a reversal may emerge soon.

According to TedPillows, Bitcoin needs to close above $89,000 on the weekly chart to confirm the next strong uptrend.

Reversal phase and potential for extraordinary growth

CryptoNobler analysts believe that Bitcoin is approaching an important "Reversal Phase." He compares the current situation to the 2017 phase, when Bitcoin underwent a period of accumulation and adjustment before entering a strong growth cycle.

CryptoNobler predicts that after the latest correction, Bitcoin could break through to the level of 200,000 USD, simultaneously triggering an "altcoin season" – a period during which other cryptocurrencies also experience significant growth.

Source: XDThis forecast also aligns with market sentiment, as many investors are hoping for the beginning of a new bullish cycle. If this scenario unfolds, Bitcoin could become the main driving force, leading the cryptocurrency market into a phase of robust growth.

The Impact of Global Liquidity on Bitcoin

Although the net liquidity flow is still flat, the increase in global M2 money supply could have a positive impact on Bitcoin. History shows that the price of Bitcoin is closely correlated with the expansion of M2 – an important measure of liquidity in the economy.

However, macro liquidity – a factor reflecting the level of capital flowing into risky assets like Bitcoin – has not increased significantly as in previous cycles. Nevertheless, analyst Colin Talks Crypto remains optimistic that Bitcoin could begin a price rally on May 1st, based on historical models related to liquidity.

Source: XMeanwhile, Michael Saylor, Chairman of Strategy and one of the strongest advocates of Bitcoin, continues to express an optimistic viewpoint. Speaking at the DC Blockchain Summit, Saylor predicted that the market capitalization of Bitcoin could soon exceed the milestone of 500 trillion USD.

Conclusion

The appearance of the Death Cross on the Bitcoin chart is attracting the attention of investors, as this is a signal that can indicate both risks and opportunities. Although Bitcoin may continue to adjust in the short term, technical analyses and market sentiment still leave open the possibility of a strong recovery.

With optimistic forecasts from experts, Bitcoin may be on the brink of a new growth cycle, opening up breakthrough opportunities not only for BTC but also for the entire cryptocurrency market.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

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Mr. Teacher

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