Bitcoin (BTC) Price Teeters on Shaky Ground as Death Cross Pattern Casts Doubt on Uptrend Continuation

Bitcoin (BTC) price treaded on shaky ground on Saturday, following rollercoaster movements earlier in the week, which saw the largest cryptocurrency briefly drop below $50,000 before jumping 28%.

Bitcoin (BTC) price showed signs of weakness on Saturday, following volatile movements earlier in the week. The largest cryptocurrency had a brief stint below the $50,000 level before surging 28%. But a technical pattern known as a "death cross" raised concerns about the continuation of the uptrend and signaled potential downside risk.

Bitcoin price soared to $62,760 on Thursday, recovering from the losses incurred during Monday’s "black swan" event. The sharp drop coincided with a sell-off in the stock market, which was triggered by weaker-than-expected US nonfarm payroll data. The data hinted at a possible recession in the United States. Additionally, the Federal Reserve’s dovish stance on cutting interest rates created a volatile environment, with risk assets like Bitcoin and stocks facing heat.

Meanwhile, BTC price faced increasing sell-side pressure ahead of a looming "death cross." A death cross occurs when a short-term moving average crosses below a long-term moving average, indicating potential bearishness.

On the daily chart, the 50-day Exponential Moving Average (EMA) stood at $62,660, while the 200-day EMA fell to $59,464. A crossover would confirm the death cross, prompting traders to consider shorting BTC or tightening their stop-loss orders. However, confirmation with other indicators was crucial, as only five of the previous patterns led to extended downtrends.

Bitcoin’s short-term whale-holding patterns could further impede the uptrend at the $64,000 to $64,000 price range, which represented their respective realized prices. Failure to break above this level would put bulls on edge, increasing the chances of the death cross pattern validating a sell-off to the $52,000 and $49,000 support levels.

Persistent negative Bitcoin ETF flows also validated the bearish picture. According to SoSoValue, a total of $89.73 million was withdrawn on Friday, bringing the cumulative inflow volume to $17.34 billion.

Continued BTC ETF inflows were crucial for maintaining the current uptrend. Historically, there was a strong correlation between positive ETF flows and Bitcoin price performance, as seen during the Q1 2024 rally to $73,737.

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