Bitcoin Price Update

There was an incident this week, on Monday to be precise, when the 23-day moving average on the Bitcoin price chart crossed down the 200-day curve, forming what is known as a “death cross” pattern. This technical analysis formation is typically associated with a decline.

However, unexpectedly, the Bitcoin price has risen by 3.8% in less than three days and is currently quoted above $88,000. It may be too early to declare the invalidation of the bearish pattern.

Bitcoin has ascended above both the 200-day and 23-day moving averages and is currently trading toward the 50-day one, which is also declining.

If we consider a hypothetical scenario, the cryptocurrency might continue soaring until the 50-day curve crosses below the 200-day one. This would form another death cross, which appears inevitable and could indicate a decline that the previous pattern failed to indicate.

However, until then, Bitcoin might continue to rise towards $89,700, where both the 50-day moving average and a crucial price resistance level are located. Until the present situation is resolved, the death cross seen on Monday may remain invalidated, but it is essential to keep this in mind.

While a single indicator on the crypto market is insufficient to predict the future, multiple signals like this death cross—especially on large time frames—can significantly alter probabilities.