Bitcoin (BTC) prices bounced over $116,500 today, earning more than 3% daily after dipping into $112,000 at the beginning of the week. The rally came as Jerome Powell suggested that rate cuts could come if the job market weakened.
Currently, the market believes there is a 90% chance of cutting this year. Macross Park pushed the code into high gear, but when you look at the charts you see a dark signal.
On the daily charts, BTC regained both a 23-day and 50-day moving average for one green candle. But now these averages come together in ways that could turn into a bearish trend if prices drop again.
A 200-day trend line of about $100,600 is the main support, and if the short line below it crosses it, it becomes a classic cross of death.
Bitcoin on thin ice
In just an hour, BTC surges have led to a 55% rise in total futures sales, with nearly $240 million in shorts being liquidated. While options volumes have more than doubled, exceeding $8.4 billion, the open interest slips through 3%, indicating that many players are focused on making profits rather than taking risks.
When the ratio between Binance and OKX exceeds 1.4, it has been shown that the market is leaning heavily towards the long side. This type of imbalance can cause situations where there are many potential benefits when emotions change.
Ethereum surged 8% to $4,600, increasing the risk-on mood. Still, setting up the chart around the moving average of Bitcoin remains the clearest signal. This green is the looming cross of death that can turn into this green run faster than the market expects.
