Cryptocurrency Analyst Benjamin Cowan We recently discussed the impact of the deadly cross indicator, which has reappeared on the Bitcoin chart. Thanks to this indicator, Price level $62,000 It has become imperative for Bitcoin to avoid another price collapse.
Kaun pointed out in video He posted on his YouTube channel that Bitcoin is at risk of falling if it fails to hold above $62,000 before entering a death cross. Bitcoin has surged to $62,000 after recovering from a price crash below $50,000 on August 5. Rise to $62,000 led to Death Crosswhich now threatens to drag down the prices of the leading cryptocurrency.
Death Cross and its Impact on Bitcoin Price
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As such, Bitcoin must reclaim the $62,000 price level and hold above it soon enough, or risk further price declines, with a break below $62,000. Psychological level $60,000 This has already become clear. The crypto analyst made comparisons to the death cross, which occurred in 2019, to provide insights into what Bitcoin might do next.
He noted that the death cross in 2019 was a local high for the leading cryptocurrency, which continued to hit higher levels afterward, and its price was bearish for about four months afterward. However, Cowan admitted that things may turn out differently this time around, noting that indicators like this tend to go “a little differently” throughout different phases of the cycle.
The timing of this death cross may also provide insight into what might happen next for Bitcoin. Cowan noted that September is, on average, Worst month for Bitcoinsuggesting that the leading cryptocurrency could be in a downtrend that could extend into September.
It ultimately comes down to the macro aspect.
Cowan revealed that whatever happens next for Bitcoin will depend primarily on external factors rather than the conditions prevailing in the cryptocurrency market. This includes macroeconomic factors such as economic inflation And the Laboratory MarketIn fact, the macro aspect is believed to be responsible for the cryptocurrency crash on August 5, as recession fears escalate.
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the US Federal Reserve And it has stuck so far interest rate cut In an attempt to reduce inflation to the desired level of 2%. But their hesitation has led to expectations that the US economy may soon enter a recession.
the US Jobs Reports for July The data also showed that market participants had reason to be concerned as the unemployment rate was higher than expected. The macro aspect has a significant impact on Bitcoin and the cryptocurrency market as it largely determines how much money investors are willing to invest in these risky assets.
Featured image by iStock, chart by Tradingview.com