PakGazette – (BTC) is facing a short-term bearish indication, with a “death cross” appearing on its hourly chart. Bitcoin’s 50-hour moving average has notably fallen below the 200-hour moving average, confirming a “death cross.”
The bearish signal comes amid a broader market selloff, which has sparked $1.42 billion in cryptocurrency liquidations in the past 24 hours, according to data from CoinGlass. Bitcoin has not been immune to this bearish trend, and its price fell as traders faced uncertainty.
Bitcoin fell more than 11% from an all-time high of $108,268 reached earlier this week on December 17, as dimmer prospects for looser US monetary policy dampened speculative fervor.
In the latest data released Friday, the personal consumption expenditures price index, the Federal Reserve’s favorite inflation gauge, showed a 0.1% increase since October and an annual rate of 2.4%, both lower than expected.
The data comes just two days after the Federal Reserve cut its benchmark interest rate by a quarter of a percentage point to a target range of 4.25%-4.5%, the lowest level in two years. During his press conference, Federal Reserve Chairman Jerome Powell took a hawkish tone on forecasts for next year. Fed policymakers upgraded their inflation outlook and projected just two rate cuts in 2025, down from four previously forecast.
With fewer Fed rate cuts projected for 2025, some investors may decide to reduce their exposure and take profits, hence the sell-off.
What’s next for Bitcoin?
At the time of writing, BTC was down 5.35% in the last 24 hours, having previously fallen to $92,115 in Friday’s trading session. If today it closes in red, Bitcoin would mark its third consecutive day of losses.
While death crosses are often considered bearish, they do not always guarantee further declines. The market is now closely monitoring Bitcoin support levels, with $90,000 being a critical psychological barrier to watch if selling pressure continues.
On the upside, if the bounce holds, the $99,974 level could be critical to watch. If Bitcoin price bounces strongly off this level, the chances of retesting above the psychological level of $100,000 increase. This could take Bitcoin beyond $108,000, with potential targets of $113,000 and $125,000.
