Bitcoin Indicator Shows 'Bearish Cross' But Could Be Positive

A key Bitcoin indicator is sending out a new warning signal in the form of a “bearish cross,” but an analysis suggests this could actually be a positive signal.
On the 15th (local time), anonymous cryptocurrency trader Mags posted on X (formerly Twitter) that "Bitcoin is bearish on the daily chart.
"I took a cross," he said, referring to a "death cross," a bearish signal that occurs when Bitcoin's price's 50-day simple moving average (SMA) crosses the 200-day SMA downward.
According to BuyBitcoinWorldwide, Bitcoin's 50-day SMA was $61,749 on that day.
The 200-day SMA was $62,485. Bitcoin price is at the $58,000 level on CoinMarketCap, and traders are paying close attention to
Mag explained that the move was a short-term bearish signal for the market, but added that the death cross could be a stronger reversal signal.
When this situation occurred in the past, both times Bitcoin's price increased by about 50% after four months.
In September 2023, Bitcoin's 50-day SMA fell from $26,578 to the 200-day SMA.
Just four months later, the price had risen 49% to $39,518.
As of July 2021, the 50-day SMA was $34,671 and the 200-day SMA was $44,680.
Similarly, four months after the cross occurred, the price of Bitcoin increased by 54% to $54,813.
"As the MA recovers, we will see a positive bearish crossover," Mag said. "However, if this pattern continues,
If this repeats, we could see several weeks of volatile price movements."