The daily chart for Bitcoin has recently formed a death cross, with the simple moving averages of 50 and 200 intersecting. Historically, such occurrences are often followed by a corrective phase, and this pattern seems to be repeating itself now.
As the bearish correction continues, it appears to be heading toward the simple moving average 200, where resistance may be encountered. The key level resistance zone to watch lies between 27,000 and 28,000, while key support is situated at 24,800 to 25,800. Traders will closely monitor these levels for potential market developments.
Adding to the bearish sentiment is the Relative Strength Index (RSI), which has been in a bearish territory since August 17. Currently resting at the 50 level, it has been over a month since then RSI couldn't get back to the overbought zone, indicating the sustained strength of the bearish sentiment.
In summary, Bitcoin has recently witnessed a significant death cross formation on its daily chart, traditionally signaling a bearish trend. Surprisingly, despite strong US economic news, the cryptocurrency exhibited a bullish uptick. However, caution is warranted, as this bullish move is likely a transient correction within an overarching bearish trend, further reinforced by the prolonged bearish stance of the Relative Strength Index (RSI).
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