Bitcoin Surges 1.5% on FOMC Day, Hits Key Resistance Level

Bitcoin's Recent Rally and Technical Challenges

Bitcoin (BTC) experienced a notable price surge during today’s FOMC day, climbing 1.5% to reach $84,000. This level aligns with the cryptocurrency’s 200-day moving average (MA), a key technical indicator often viewed as a critical support and resistance level.

The 200-Day Moving Average as Resistance

Bitcoin’s current price point is significant, as the 200-day MA historically serves as a pivotal level for the asset. While BTC has managed to print higher lows in recent days, it has struggled to break decisively above this resistance. The repeated attempts to surpass this threshold highlight the ongoing challenge for bullish momentum.

Death Cross Warning Signals Potential Downturn

Adding to the cautious outlook, a death cross is forming on Bitcoin’s daily chart. This bearish pattern occurs when the 23-day MA crosses below the 200-day MA, often signaling a potential downtrend. If this technical formation completes, it could indicate short-to-medium-term losses for BTC.

Technical Indicators Suggest Caution

Despite the recent optimism driving Bitcoin’s rally, the combination of the death cross and the struggle to overcome the 200-day MA suggests that the current upward movement may be a bull trap. This could mean that BTC is more likely to decline than sustain further gains in the near term.

Conclusion

Bitcoin’s recent surge to $84,000 has brought it to a critical technical juncture. While the price action shows resilience, the formation of a death cross and the resistance at the 200-day MA indicate that the cryptocurrency may face headwinds in the short term. Investors should remain cautious, as technical analysis suggests a higher likelihood of losses than continued growth.