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- Bitcoin’s Death Cross could signal an unexpected reversal ahead.
- Analysts suggest Bitcoin may bounce from critical support level soon.
- Fear & Greed Index shows extreme caution, but recovery is possible.
Bitcoin has been facing significant pressure recently, holding near the $96,000 mark. Despite this, the market remains uncertain, and a key technical pattern, the Death Cross, has emerged on Bitcoin’s chart. Traditionally, this signal is seen as a bearish indicator, but analyst Colin has a different perspective. According to him, the Death Cross may be a sign that Bitcoin is approaching the bottom and may turn around in the given conditions on the market.
The Death Cross is when a short-term moving average crosses the long-term moving average. This is usually an indicator of a possible decline. Nevertheless, Colin says such a trend might even become the start of a recovery. The same has been observed in the previous periods towards the bottom of the markets, which are usually a turning point. It creates an opportunity that Bitcoin may come as a surprise to the market and move up.
Also Read: Spanish Influencer Álvaro Romillo Jailed Over Alleged $300 Million Ponzi Scheme.
Key Support Level Holds Hope for Bitcoin’s Reversal
Bitcoin is at a vital support point at the bottom of the long-term price channel. This region has been traditionally a place of recovery. Confident analysts are of the opinion that Bitcoin is poised to go on a short-term bounce.
The levels of resistance between $96,764-$99,644 are now under focus. Breaking the levels may be an indicator of a bigger reversal, though it is not clear whether Bitcoin is strong enough to break the levels.
The Fear and Greed Index just reached 10, and this indicates extreme fear in the market. Investors are apprehensive, awaiting more evident signs of recovery. However, Bitcoin may have also bottomed out, which can mark the beginning of a slight recovery.
The market could also be boosted by a change in the Federal Reserve policy whereby the quantitative tightening will end. Previously, these policy amendments have enabled the crypto market to recover.
The next several steps of Bitcoin are significant to figure out whether the Death Cross is an indicator of the recovery or the further fight.
Also Read: XRP’s Consolidation Phase Signals Potential for Major Breakout
