The cryptocurrency landscape has recently witnessed a significant development as Bitcoin has printed a Death Cross, a technical indicator that typically signals potential weakness. This event occurs against a backdrop of a declining global crypto market cap, which now stands at approximately $3.25 trillion, reflecting a near 1% drop.
At present, Bitcoin is trading near $96,000, showing signs of weekly losses, while altcoins exhibit even steeper declines. Despite the alarming name of the Death Cross, analyst Colin suggests that this could mark a bullish turning point for Bitcoin, particularly given its current price positioning.
Historically, the Death Cross has been associated with market bottoms rather than peaks. Currently, Bitcoin has settled into a major support zone at the lower boundary of its long-term trading channel, a region recognized for its potential to foster strong recoveries. This technical setup has led to heightened expectations for a possible near-term rebound in prices.
However, the prevailing question remains whether any upward movement will lead to new all-time highs or merely serve as a temporary relief rally before further downward momentum resumes. Coupled with this technical analysis is a pivotal macroeconomic event scheduled for December 1, when the U.S. Federal Reserve is expected to conclude its quantitative tightening measures. Historically, such shifts away from liquidity reduction have provided support for digital assets, including Bitcoin.
In the short term, Colin expresses optimism for an upward movement beginning imminently, potentially within days. Nevertheless, current market sentiment has dipped into extreme fear, as evidenced by the Fear & Greed Index, which has fallen to 10, indicating one of the lowest levels in recent times.
Recent analyses indicate that Bitcoin might have completed a minor downward push, forming a final low within its short-term wave structure. As it gradually approaches a resistance zone between $96,764 and $99,644, the absence of clear bullish confirmation raises further concerns. If this resistance fails to break, Bitcoin may once again test the $91,000 region.
