Bitcoin is set to see a very rare occurrence on its price chart as the cryptocurrency's weekly moving average (MA) 50 has converged with the weekly MA 200. The weekly MA 50 looks set to cross below the MA 200 for the first time on record in a day or two, confirming the bearish death cross.
Bitcoin has never seen a death cross on its weekly chart before, so the appearance of one might seem concerning. However, some analysts believe the indicator is based on backward-looking moving averages, as most of the sell-off might have occurred before the crossover.
The death cross is the opposite of the golden cross and might signal a long-term bear market. This is understandable given that 2022 was a difficult year for cryptocurrencies, as evidenced by falling prices. Bitcoin crashed nearly 67% from its all-time high of nearly $69,000 reached in November 2022.
As was previously reported, Bitcoin's daily chart recently displayed its first golden cross in months. The recent events on the market, however, appear to be slowly eclipsing the bullish outlook.
Bitcoin drops below $23K
Bitcoin (BTC) is once again under pressure after briefly falling to a four-week low of $22,408 on Thursday morning before rebounding to trade at about $22,735 as of press time, according to CoinMarketCap.
The news that the U.S. Securities and Exchange Commission (SEC) is investigating top cryptocurrency exchange Kraken for allegedly breaking securities laws is what sparked today's market decline.
Investors also considered several comments made by Fed officials over the week, which offered new perspectives on their outlooks for the U.S. economy and monetary policy.
On Wednesday, Fed Governor Christopher Waller suggested that interest rates could rise more than what investors are anticipating.