Bitcoin (BTC) experienced a downward trend on October 11 as it faced its first significant test since the beginning of the month, reaching $27,000.
BTC Battles for Support After Daily "Death Cross"
The weakening BTC price overnight, including a drop to $26,978 on Bitstamp, indicates a reversal of the gains made in October after the September monthly close.
Analysis of intraday performance by popular trader Skew highlighted the interaction between two moving averages (MAs) and the occurrence of a "death cross."
In March, Skew observed that the 100-day MA crossed above the 200-day MA, a "golden cross" event that traditionally signifies upcoming price increases.
The recent "death cross" indicates a potential downward trend for BTC, with Skew suggesting a test of the 200-day MA before a rebound.
Despite early gains in October, the daily chart shows that the 200-day MA is acting as strong resistance for BTC/USD. Since the confirmation of the death cross on October 9, the pair has lost nearly $1,000, or 3.4%.
On shorter timeframes, Skew identified $27,300 and $26,800 as key levels to watch.
Another trader, Crypto Tony, revealed that he had already shorted BTC after it fell below $27,200.
Trader Jelle agreed that the current levels around $27,000 would determine whether there would be a recovery or a breakdown.
Will Bitcoin Reach a "Macro Low" Before the Halving?
Current BTC price behavior has led some analysts to predict lower levels for Bitcoin in the coming months, including a potential return to $20,000.
Trader and analyst Rekt Capital noted that the BTC/USD weekly chart has yet to establish a higher low compared to late 2022, suggesting the possibility of a breakdown from the July highs.
An accompanying chart provided a target of around $20,000 as a potential macro low, leading up to Bitcoin's next block subsidy halving event in April 2024.
If a macro low is reached, Bitcoin would be following a similar pattern to the pre-halving year of the previous cycle in 2019.
It is important to note that this article does not provide investment advice. Readers should conduct their own research and exercise caution when making investment decisions.
