Bitcoin Recovery Pushes Death Cross Back To July, But Bulls Still Not In Charge, Say Crypto Analysts

What Happened: Bitcoin rallied as much as 20% last weekend, reclaiming $40,000 for the first time in two weeks, but traders appeared cautious about the outlook for the market-leading cryptocurrency.

#BTC's phenomenal recovery over the past few days means that a potential Death Cross has been pushed back to late July#Crypto #Bitcoin pic.twitter.com/NJAumCEwXh

— Rekt Capital (@rektcapital) June 15, 2021

Popular crypto analyst Rekt Capital said on Twitter that Bitcoin’s phenomenal recovery had pushed back an impending “death cross” to late July.

A death cross is a lagging technical indicator that appears when price action has already been less than optimal, but if confirmed, it could possibly lead to an even further decline in price.

However, another crypto investor Lark Davis, pointed out that Bitcoin hasn’t managed to successfully close above the 200 EMA, and a bullish scenario might not be confirmed just yet.

#bitcoin failed to close above the 200 EMA (orange line), bulls still not in charge of the market. pic.twitter.com/dMUeFd0vCP

— Lark Davis (@TheCryptoLark) June 16, 2021

In the event that a death cross does, in fact, play out later this year, Rekt Capital estimated another crash of over 50%, which would see Bitcoin under $20,000.

However, even in the most bearish scenario, some market proponents remained optimistic about the long-term outlook for Bitcoin.

“I think it is likely that we are entering a new bear market. Will it lose its footing the way it did in 2018? Unlikely,” said Tim Frost, founder of DeFi wealth management platform YIELD App, to Benzinga in an email.

Read also: UK Financial Advisors Would Never Recommend Investing In Crypto Or 'Meme Stocks:' Poll

“Things are very different now than they were then, we have a huge amount of institutional investment in the space, and possibly more if current filings with the SEC go through.”

“I do think though, that it has more to go,” he added. “Latest figures show that it was retail investors that were shaken out though, the whales and the long-term investors are staying put.”

Price Action: Bitcoin was trading at $38,241 at the time of writing, down 4.64% in the past 24-hours.

The market-leading cryptocurrency accounted for 45.39% of the crypto market with $38 billion in trading volume, according to CoinMarketCap.