2024

Value

Bitcoin

when

<ul> 
 <li aria-level="1">Bitcoin Approaches “Death Cross” With 50-Day Moving Average Falling Below The 200-Day, Suggesting Potential Market Challenges.</li> 
 <li aria-level="1">Historical Analysis Shows Post-Death Cross Recoveries, With 2020 Seeing A Surge From Below $5,000 To Over $20,000.</li> 
</ul> 
Bitcoin is currently on the brink of forming a “death cross,” a technical chart pattern that might signal impending market challenges. This term describes when the 50-day moving average falls below the 200-day moving average—a traditional indicator that could suggest bearish market conditions. 
<div class="cryptoboxes" id="mcw-12344" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-chartcoin="BTC" data-chartcurrency="USD" data-chartrate="1.000268" data-charttype="chart" data-chartview="day" data-charttheme="light" data-chartsmooth="true" data-chartareacolor="" data-chartbgcolor=""></div>
</div> 
At the moment, Bitcoin trades at $57,389, marking a 3.9% increase over the past day, yet it still represents a 22.2% decrease from it’s all-time high of over $73,000 recorded in March. This setup occurs amidst a backdrop of Bitcoin’s price rebound from its recent low of $49,781 on August 5th. 
<img loading="lazy" decoding="async" class="size-full wp-image-85862" src="https://www.ethnews.com/wp-content/uploads/2024/08/Screenshot-2024-08-07-at-11.46.21.png" alt="" width="1201" height="885"> 
Despite these fluctuations, historical <a href="https://www.ethnews.com/bitcoin-set-to-explode-fed-holds-rates-steady-but-september-could-bring-surprises/">data from ETHNews</a> and similar patterns in March 2020 and June 2021 shows that such death crosses have sometimes preceded significant price recoveries and new highs. 
This historical perspective suggests that while the death cross is traditionally viewed as a bearish signal, it has also been followed by substantial rallies in Bitcoin’s price. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 up only from here!? <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4c8.png" alt="📈" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/lVZhXW0WKN">pic.twitter.com/lVZhXW0WKN</a> 
 — wallstreetbets (@wallstreetbets) <a href="https://twitter.com/wallstreetbets/status/1820929380790464669?ref_src=twsrc%5Etfw">August 6, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
Enhancing this viewpoint, a well-known crypto enthusiast on X, referred to as ‘wallstreetbets,’ has identified a recurring pattern in Bitcoin’s recent chart that mirrors the scenario from 2020. 
During the COVID-19 market crash, Bitcoin dropped into a descending broadening pattern and subsequently rebounded strongly from below $5,000 to over $20,000. According to ‘wallstreetbets,’ a similar pattern is forming in 2024, hinting at a potential upcoming surge. 
<figure id="attachment_85866" aria-describedby="caption-attachment-85866" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-85866" src="https://www.ethnews.com/wp-content/uploads/2024/08/Bitcoin-MVRV-Ratio-3-2048x1152-1.png" alt="Bitcoin-MVRV-Ratio-3-2048x1152" width="2048" height="1152">
 <figcaption id="caption-attachment-85866" class="wp-caption-text">
 Source: CryptoQuant
 </figcaption>
</figure> 
Beyond technical analysis by ETHNews, <a href="https://www.ethnews.com/crypto-in-crisis-bitcoin-ignores-fed-cuts-hits-startling-low/">Bitcoin’s fundamental indicators</a> also provide valuable insights. The Market Value to Realized Value (MVRV) ratio, a metric that compares market price to actual value, stands at 1.79, suggesting Bitcoin is currently undervalued. 
 Typically, a MVRV ratio below 2 indicates that the asset is trading below its fair value, which could be seen as a buying opportunity for investors. 
<figure id="attachment_85870" aria-describedby="caption-attachment-85870" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-85870" src="https://www.ethnews.com/wp-content/uploads/2024/08/Screenshot-2024-08-07-at-11.58.23-2048x584-1.png" alt="" width="2048" height="584">
 <figcaption id="caption-attachment-85870" class="wp-caption-text">
 Source:: Coinglass
 </figcaption>
</figure> 
Moreover, Bitcoin’s Open Interest, which tracks the total number of unsettled derivative contracts, has increased by 3.81% to $28.24 billion in the past 24 hours. 
However, the overall value of these contracts has seen a decline of 48%, totaling $80.12 billion, pointing to a decrease in <a href="https://www.ethnews.com/bitcoin-whales-on-a-buying-spree-is-a-190k-price-tag-in-sight/">market momentum</a> or a change in trader sentiment. 
The post <a href="https://www.ethnews.com/bitcoin-hits-death-cross-panic-sell-or-the-best-buying-opportunity-of-2024/">Bitcoin Hits Death Cross: Panic Sell or the Best Buying Opportunity of 2024?</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

Bitcoin Hits Death Cross: Panic Sell or the Best Buying Opportunity of 2024?

ETHNews

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