Baxia Markets
May 09, 2024

BTCUSD Long-term Outlook: Death Cross Signals Prolonged Bearish Trend

market analysis header image

In the realm of cryptocurrency trading, BTCUSD has captured the attention of traders worldwide as it continues its downward trajectory for over four consecutive trading days. The market is ensconced beneath a clear descending trendline, signaling a bearish sentiment that has investors on edge.

BTCUSD finds itself entrenched beneath a distinct descending trendline, serving as a formidable dynamic resistance level. Traders closely monitor this trendline, as a breakthrough could signify a shift to a neutral or potentially bullish stance. Moreover, the market is currently trading below the value area, indicating a bearish sentiment and a diminished demand for BTC.BTCUSD Long-term Outlook: Death Cross Signals Prolonged Bearish Trend

Key resistance looms at $61652, representing a recent swing high observed just yesterday. A breach above this level could pave the way for a test of subsequent resistance levels, notably the EMA 50 or EMA 200. Conversely, traders eye key support levels to gauge potential downside risks.

Technical indicators paint a somber picture for BTCUSD, with the appearance of a death cross during the Asian trading session further affirming bearish sentiment. The MACD (Moving Average Convergence Divergence) indicator's signal line plunges into bearish territory below the zero line, signaling downward momentum. Similarly, the RSI (Relative Strength Index) breached the 40% level three days ago, entering the bearish zone, albeit with a temporary reprieve as it flirted with overbought conditions during today's trading session.

Amidst these developments, the long-term outlook for BTCUSD remains decidedly bearish, underscored by the recent occurrence of a death cross on the EMA (Exponential Moving Average). Traders brace for continued volatility and monitor key technical levels for potential shifts in market sentiment.

As BTCUSD navigates the complexities of the cryptocurrency landscape, traders remain vigilant, adapting strategies to navigate prevailing market conditions and capitalize on emerging opportunities amidst the persistent bearish sentiment.

Key Takeaways:

  1. BTCUSD remains entrenched in a bearish decline for over four consecutive trading days.
  2. Descending trendline poses dynamic resistance, while market trades below value area, indicating low demand.
  3. Key resistance at $61652, with potential for testing EMA 50 or EMA 200 as support levels.
  4. Technical indicators such as MACD and RSI confirm bearish bias, with appearance of death cross reinforcing downward momentum.
  5. Long-term outlook for BTCUSD remains bearish, prompting traders to monitor key levels and adapt strategies accordingly.

Key Economic Releases to Watch Today

UK, BoE Interest Rate Decision

Forecast 5.25% vs Previous 5.25%

USD, Initial Jobless Claims

Forecast 212K vs Previous 208K



News Article CTA - Trading with Baxia Markets 2024

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

Subscribe by Email