Will the death cross cut off Bitcoin's lifeline at $25,000?

Pooja193

September 13 News
▶ Bitcoin has found strong support at $25,600 and has been rebounding from that point.
▶ The potential "death cross" between the 50-day and 200-day moving averages could indicate a price decline.
▶ Technical indicators RSI and MACD suggest that Bitcoin may be poised for a bullish momentum.

As the Group of Twenty (G20) nations plan to establish a unified framework for cryptocurrency regulation, Bitcoin's price remained stable over the weekend, exceeding expectations. Meanwhile, the Reserve Bank of India Governor Shrikanta Das confirmed that the central bank's digital currency currently has 1.5 million users and is accepted by 300,000 merchants.

Bitcoin's price has been consolidating for some time. One key thing to note is that whenever the price drops to around $25,600, it bounces back. This has happened six times already. However, Bitcoin's price has struggled to break above the 50-day EMA.

Zooming in on the daily time frame paints a slightly optimistic picture. A series of lower-priced rejection candles suggest the potential for a bullish rebound. However, multiple failed attempts to trigger a bullish rebound indicate significant supply pressure lurking in Bitcoin's price narrative.

Technical indicators:
Relative Strength Index (RSI): The daily RSI indicates the frontiers of bullish sentiment. While it hovers below the midline, a clear bullish divergence is evident.
Moving Average Convergence Divergence (MACD): The MACD and signal line also slightly tilt towards the positive spectrum.
EMA (Exponential Moving Average): The 50-day and 200-day EMAs are on the verge of a death cross, which could push BTC prices lower.

Where is Bitcoin's price heading?
Currently, Bitcoin's price is trading at $25,857, at a critical juncture. If it breaks below the support level at $25,600, it may pave the way for a drop to around $24,864, which is a roughly 3% decline. If this defense crumbles, Bitcoin's price could further decline to $24,100.

However, if Bitcoin can gather enough bullish momentum and break free from these constraints, the immediate obstacle is $27,294. Overcoming this resistance is crucial for BTC to reach the coveted $28,000 mark, providing approximately 9% potential upside.