Bitcoin Price Must Break $62K to Avoid Disastrous ‘Death Cross’ Consequences

Earlier this week, we reported that Bitcoin (BTC) is heading for a so-called ‘death cross,’ an indicator that often points to impending doom in the short term.

However, there is still a chance that Bitcoin can escape this threat. According to a recent analysis, Bitcoin can avoid a death cross if the price manages to stay above the crucial $62,000 level.

$62,000 is a crucial level

What exactly is a death cross and what are its implications? A death cross occurs when Bitcoin’s 50-day moving average (SMA) crosses below its 200-day SMA. This crossing is often seen as a signal of a potential downtrend in the market. However, historical data shows that the consequences of a death cross are not always negative. In the long run, these crossings often prove to be less significant.

Bitcoin briefly rose above $62,000 overnight Thursday night, but is now trading around $61,000. The $62,000 barrier is crucial at the moment. If Bitcoin can break through this threshold and stay above the 50-day SMA, this could be the start of a new upward movement.

Bitcoin at a Critical Tipping Point: Could the ‘Death Cross’ Be Positive After All?

According to renowned crypto analyst Benjamin Cowen, Bitcoin is at a crucial point. In a post on X, he points out that a similar situation occurred in 2023, where Bitcoin started to rise after a ‘death cross’.

“In 2023, BTC started its rally just after the death cross. It then broke through its 50-day SMA and held it as support, continuing to move higher. The sustainability of this move will likely depend on BTC re-entering its 50-day SMA ($62k) and holding it as support, just like it did in 2023.”

Although a death cross is generally considered negative, it does not have to be a disaster. Last year, the death cross marked the exact bottom, after which Bitcoin started to rise from $24,000.

It is important to note, however, that this rise coincided with the US banking crisis last year, an event that proved beneficial for Bitcoin. Cowen points out that Bitcoin’s price is heavily influenced by macroeconomic factors, such as interest rate expectations in the United States. If there are signs that interest rates are about to change drastically, this could have a major impact on risky assets, including Bitcoin.

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