Bitcoin has registered a bearish “death cross” on its hourly chart. The 50-period moving average has crossed below the 200-period moving average. While this technical indicator often suggests prolonged downtrends in longer timeframes, the hourly death cross typically suggests only a temporary pullback. Here’s what traders should understand about Bitcoin’s current situation, including how on-chain data and historical price actions can enhance their strategies.

Since May 9, Bitcoin’s price has fluctuated between $100,703 and $105,787, indicating a stalemate between buyers and sellers. Despite pushing against the death cross signal, Bitcoin recorded two consecutive hourly red candles, showcasing short-term selling pressure. Nevertheless, the price remains above the significant $100,000 threshold, indicating that bullish traders are still holding their ground.

Examining Short-Term Moving Averages

• 50-hour MA: Reflects recent price movements and has recently dipped below the 200-hour MA.

• 200-hour MA: Captures wider market trends and continues to rise, indicating the mid-term uptrend remains intact.

• Interpretation of the Death Cross: Suggests increased chances of further consolidation or a slight pullback within the next few hours.

To identify potential support levels, traders can utilize historical price averages and volume metrics from the Cryptocurrency Historical Data API, which provides detailed price and moving average insights to support technical analysis.

Key Trading Levels and Patterns
Bitcoin is currently in a consolidation phase:

• Upper Limit: $105,787. A consistent break above this level could reactivate bullish momentum.

• Lower Limit: $100,703. Should the price dip below this level, a deeper correction towards $95,000 could occur.

Despite the hourly death cross, Bitcoin saw a 0.94% rise over the past 24 hours, reaching $103,850 as the broader cryptocurrency market experienced a slight recovery. Traders monitoring daily trends and shifts in volatility can obtain current OHLC data and volatility metrics through the Cryptocurrency Daily API to optimize trading strategies.

What Lies Ahead?

• For a Bullish Outcome: A decisive breach of $105,787 could attract new buyers targeting psychological and technical levels around $120,000.

• For a Bearish Outcome: If Bitcoin fails to surpass the $109,114 all-time high, profit-taking may ensue, increasing the risk of dropping below $100,703 and facilitating further pullbacks.

In the immediate future, traders should await a clear breakout or breakdown from the current trading range before deploying significant capital. Observing moving average crossovers, volume surges, and daily volatility will aid in distinguishing between a temporary signal and the onset of a broader trend reversal.