Bitcoin soared to almost $63,000 after the Death Cross rally

BTC prices rose to an intraday high of $62,790 during the Asian trading session on Friday morning.

The move added 9.5% to the asset’s value over the past 12 hours as it rose from its intraday low of $57,000 on August 8.

Bitcoin has now recovered about 25% from its dump to $49,800 on Monday after a period of bearish buying and is on track to recover to its limited accumulation channel and zone.

Cross of death averted

In a post on X on August 9, ITC Crypto analyst and founder Benjamin Cowen said that Bitcoin would be concentrating on its death cross.

The forecast has now materialized, and the bearish technical signal is in the past…for now.

I mentioned on my YouTube channel on Monday that we will probably see one #BTC meet in his cross of death.

You can already see that concentration has arrived.

So maybe some context is needed:

What happened during the previous death crosses?

Thread 👇 pic.twitter.com/pDbfYTseYs

— Benjamin Cowen (@intocryptoverse) August 8, 2024

A death cross is a technical analysis indicator that shows a short-term moving average falling below a longer-term moving average, usually a 50-day and a 200-day moving average. This is often a sign of a bearish investment, but not always.

Cowen noted that in 2023, BTC began its rally right after the death cross. “It then broke above its 50-day SMA (simple moving average) and subsequently held it as support before moving higher,” he added.

However, in 2022, there was a small rally at the death cross, but it faded after the chart pattern played out.

The analyst concluded that Bitcoin would need to hold support above $62,000 for the upward move to sustain. However, since then the asset has retreated below this level.

“The durability of this move will likely depend on BTC first breaking above its 50D SMA ($62,000) and then holding it as support as it did in 2023.”

Analysts responding to the tweet said: “The first death cross isn’t a big deal, it’s the second one we should be more nervous about.”

There were two death crosses during the 2021 bull market, a big rally followed the first, but the two-year bear market followed the second.

First Death Cross isn’t a big deal, it’s the second one we should be more nervous about…

Notice that was the case in the previous Bull Run (2021/2022)? We are perfectly on track to become parabolic in 2025… 🥂 pic.twitter.com/Z2qLkjm3Of

— Anonymous | Crypto Predictions (@Crypto_Twittier) August 9, 2024

Elsewhere on Crypto Markets

The total market capitalization has gained 6% on the day, returning to $2.2 trillion at the time of writing. However, it needs to recoup $2.5 trillion to erase all losses this week.

Bitcoin has been in the driving seat, but Ethereum is also showing strong signs of recovery. ETH added 9% on the day, topping $2,700 during Asian trade before cooling slightly to trade at $2,630 at the time of writing.

Altcoins are mostly in the green with double-digit gains for Near Protocol (NEAR), Pepe (PEPE), Stacks (STX), Bittensor (TAO), and 32% for Sui (SUI).

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