Bitcoin (BTC) has signaled a bearish trend following the formation of a one-hour death cross, a technical indicator often associated with upcoming price declines. This occurrence marks the fourth death cross in the last two months, with the previous one recorded on June 19.
According to analysis from TradingShot, Bitcoin's recent death cross could lead the cryptocurrency towards a price of $60,200, with a more severe drop potentially reaching $57,250. At the time of this analysis on July 14, Bitcoin was priced at approximately $62,600.
A death cross happens when a short-term moving average falls below a long-term moving average, indicating a loss of momentum and potential trend reversal. Historical data shows that every one-hour death cross since May has been followed by notable price drops, with declines ranging from 6.79% to 11.40%.
Moreover, Bitcoin has struggled to break through lower resistance levels since early July, with a recent rejection near the $64,400 mark. The current bearish sentiment is further exacerbated by recent market uncertainties, particularly as investors react to mixed signals from the U.S. economy, including a 0.4% drop in June's CPI.
Additionally, the U.S. government's transfer of approximately 3,940 BTC, valued at about $244 million, to Coinbase Prime has raised concerns about increased market supply. While not all transfers lead to immediate sales, this development has added to existing fears.
Currently, Bitcoin is trading at $63,854, reflecting a slight increase of 2.6% over the last day and 1.3% over the past week. Despite the recent uptick, Bitcoin remains under technical pressure, trading below both its 50-day SMA of $64,641 and its 200-day SMA of $73,785, suggesting that sellers are still in control of the market.
This material is for informational purposes only and should not be considered financial advice.
