Cryptocurrency analyst Benjamin Cowen The impact of the death cross indicator, which has reappeared on the Bitcoin chart, was recently discussed. Thanks to this indicator, The price level of $62,000 has become crucial for Bitcoin to avoid another price crash.
Cowen noted in a video posted on his YouTube channel that Bitcoin is at risk of falling further if it fails to hold above $62,000 before the Death Cross. Bitcoin had climbed as high as $62,000 after recovering from its price drop below $50,000 on August 5. Increase to $62,000 caused the Cross of deathwhich now threatens to push prices of the flagship cryptocurrency lower.
The Death Cross and its impact on the price of Bitcoin
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As such, Bitcoin must recover and sustain above the $62,000 price level soon enough, or it risks further price declines, with a drop below the psychological level of $60,000 It’s already in sight. The cryptocurrency analyst made specific comparisons to the Death Cross, which occurred in 2019, to provide insight into what Bitcoin’s next move could be.
He noted that the Death Cross in 2019 marked a local high for the flagship cryptocurrency, as it then recorded lower highs and its price was bearish for about four months afterward. However, Cowen admitted that things could turn out differently this time around, noting that indicators like these tend to play out in a “slightly different way” throughout different phases of the cycle.
The timing of this Death Cross could also give insight into what could happen next for Bitcoin. Cowen noted that September is, on average, the busiest month The worst month for Bitcoinsuggesting that the flagship cryptocurrency could be in for a downtrend that could extend into September.
It all comes down to the macro aspect
Cowen revealed that what happens next with Bitcoin will depend primarily on external factors rather than the prevailing conditions in the cryptocurrency market. This includes macroeconomic factors such as inflation and the laboratory marketIn fact, the macroeconomic factor is believed to be responsible for the fall of cryptocurrencies on August 5, when fears of a recession increased.
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He United States Federal Reserve So far he has refrained from Reduction of interest rates in an attempt to bring inflation down to the desired 2%. However, his doubts have led to projections that the US economy could soon enter a recession.
He US July employment reports It was also shown that market participants have reason to be worried, as the unemployment rate was higher than expected. The macroeconomic aspect significantly affects Bitcoin and the cryptocurrency market because it largely determines how much money investors are willing to invest in these risky assets.
Featured image from iStock, chart from Tradingview.com
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