Cryptocurrency analyst Benjamin Cowen recently the impact of the death cross indicator was discussed, which reappeared on the Bitcoin chart. Thanks to this indicator, price level 62,000 dollars has become crucial to avoiding another Bitcoin price crash.
Cowen noted in video posted on his YouTube channel that Bitcoin is at risk of falling if it does not stay above $62,000 on its way to the Death Cross. Bitcoin has risen to $62,000 after recovering from a crash below $50,000 on August 5. boost to $62,000 led to Death Crosswhich now threatens to cause a decline in the price of the flagship cryptocurrency.
Death Cross and Its Impact on Bitcoin Price
Hence, Bitcoin needs to recover and sustain above the $62,000 price level soon, otherwise there is a risk of further price declines until it falls below psychological level 60,000 dollars already in sight. The cryptocurrency analyst specifically referenced Death Cross, which took place in 2019, to provide insight into what Bitcoin’s next move could be.
He noted that Death Cross in 2019 marked a local high for the flagship cryptocurrency, as it reached all-time lows after that point and was bearish for about four months. However, Cowen admitted that things could be different this time around, noting that such indicators tend to play out in “slightly different ways” during different phases of the cycle.
The timing of this Death Cross could also provide insight into what could happen next for Bitcoin. Cowen noted that September is an average worst month for bitcoinwhich suggests that the flagship cryptocurrency may be in a downtrend that could last until September.
It all comes down to macro issues
Cowen revealed that whatever happens next for Bitcoin will depend primarily on external factors rather than prevailing cryptocurrency market conditions. This includes macroeconomic factors such as inflation and laboratory marketIndeed, the macro side is believed to be responsible for the August 5 cryptocurrency crash as recession fears grew.
This US Federal Reserve so far he has held back lowering interest rates in order to bring inflation down to the desired level of 2%. However, their hesitation has led to predictions that the US economy could soon enter a recession.
This July US Employment Reports also showed that market participants have reason to be concerned, as the unemployment rate was higher than expected. The macroeconomic side has a significant impact on Bitcoin and the cryptocurrency market, as it largely determines how much money investors are willing to invest in these risky assets.
Featured image from iStock, chart from Tradingview.com
