Bitcoin still due 'next leg down' as $73K BTC price precedes death cross
Why it matters: Bitcoin's short-term gains may be a head fake before a significant downturn, impacting investor portfolios.
- Keith Alan, cofounder of Material Indicators, warns that Bitcoin's recent rally to $73,019 is likely a short squeeze and does not negate the risk of a continuing bear market.
- Bitcoin is currently caught between multiple technical resistance levels, including the 21-day SMA at $67,550 and psychological resistance around $75,000.
- A 'death cross' between the 21-week and 100-week SMAs is still on track to confirm next week, which Alan believes will precede a further price decline unless a significant bullish event occurs.
- Long-term price expectations, as reported by Cointelegraph, suggest a potential bear market bottom at or below the $50,000 mark.
Despite recent short-term gains, Bitcoin (BTC) faces significant overhead resistance and the looming threat of a 'death cross' between key weekly moving averages, signaling a potential 'next leg down' unless a major bullish catalyst emerges. Analyst Keith Alan warns that current price strength may be a short squeeze, with a return to downside possible as early as next week, potentially pushing BTC below the $50,000 mark.
