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Bitcoin (BTC) has flashed a rare death cross, as this is not occurring on its charts but rather on a key indicator.
According to Ali, a crypto analyst, the Bitcoin MVRV Momentum indicator has recently formed a death cross with implications for Bitcoin price momentum. MVRV estimates the ratio of Bitcoin's market cap to its realized cap, which indicates whether the price is overvalued or not. A death cross occurs when a short-term moving average crosses above a long-term moving average, a bearish indication.
Ali stated that the death cross on this key indicator might imply a macro momentum reversal from positive to negative: "A recent death cross in the Bitcoin (BTC) MVRV Momentum indicator signals a macro momentum reversal from positive to negative."
Bitcoin dipped to its lowest level in nearly seven weeks after the token retreated from the record high set in mid-August.
What's next?
Bitcoin extended its drop to a low of $108,670 on Tuesday before rebounding. The price reached an intraday high of $113,364 and currently trades at $112,850, up 1.34% in the last 24 hours.
According to CryptoQuant, the $109,000 to $112,000 range remains a critical support zone for Bitcoin in the short term. A weekly close above here could strengthen Bitcoin's upward momentum, while a close below it may accelerate the recent drop.
Below here, Glassnode stated that Bitcoin is holding above an accumulation zone, which has been since December 2024 in the range of $93,000 and $110,000. On the other hand, on-chain data highlights $113,600 and $115,600 as likely resistance levels for the Bitcoin price going forward.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team