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Bitcoin (BTC) is facing a bearish short-term indication, with a "death cross" appearing on its hourly chart. Bitcoin's 50-hour moving average has markedly fallen below the 200-hour moving average, confirming a "death cross."
The bearish signal comes amid a broader market sell-off, which has led to $1.42 billion in crypto liquidations over the past 24 hours, per CoinGlass data. Bitcoin has not been immune to this bearishness, with its price falling as traders faced uncertainty.
Bitcoin fell by more than 11% from a record high of $108,268 achieved earlier this week, on Dec. 17, as lesser prospects for looser U.S. monetary policy dampened speculative fervor.
In the most recent data release on Friday, the personal consumption expenditures price index, the Fed's favored inflation indicator, showed a 0.1% increase from October and an annual rate of 2.4%, both lower than expected.
Tomiwabold OlajideThe data comes just two days after the Fed dropped its benchmark interest rate by a quarter percentage point to a target range of 4.25%-4.5%, the lowest level in two years. During his news conference, Fed Chair Jerome Powell struck a hawkish tone about the forecast for next year. Fed policymakers raised their inflation outlook and projected only two rate cuts in 2025, down from four previously predicted.
With fewer Fed rate cuts projected in 2025, some investors may decide to reduce their exposure and take profits, hence the sell-off.
What’s next for Bitcoin?
At the time of writing, BTC was down 5.35% in the last 24 hours, after it earlier dropped as low as $92,115 in Friday's trading session. If today closes in red, Bitcoin would mark its third straight day of losses.
While death crosses are often viewed as bearish, they do not always guarantee further declines. The market is now closely monitoring Bitcoin's support levels, with $90,000 being a critical psychological barrier to watch if selling pressure continues.
On the upside, if the rebound is sustained, the $99,974 level might be critical to watch out for. If the Bitcoin price rebounds off this level with strength, the chances of retesting above the $100,000 psychological level increase. This might take Bitcoin beyond $108,000, with potential targets of $113,000 and $125,000.
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