Bitcoin (BTC) and XRP are both experiencing key technical movements, with Bitcoin testing the $88,800 support level and XRP approaching a potential “death cross,” a bearish signal indicating further downside risk.
Bitcoin’s price dipped by 1.5% on Sunday (UTC), breaking below a trendline that had connected the lows from April 9 and April 20, according to TradingView charts. This breakdown from the rising trendline, a critical demand zone, raises concerns that the recovery rally from the April 9 lows below $75,000 may have lost momentum, suggesting the possibility of further declines. Additionally, Bitcoin’s price moving below the Ichimoku cloud on the hourly chart, a popular momentum indicator, further supports the bearish outlook.
On the downside, the $88,800 level could serve as a vital support zone, as it previously held back upward movements on March 24 and April 2. If tested again, it could play a crucial role in determining Bitcoin’s next move.
However, a resurgence above the Ichimoku cloud would invalidate the current bearish setup and could trigger a re-establishment of the bullish outlook, potentially pushing Bitcoin back toward the $100,000 level.
XRP Approaching Death Cross
Meanwhile, XRP has also shown signs of weakness. After a brief recovery from the lows on April 7, XRP’s price has now dropped below the 50-day simple moving average (SMA). More concerning is the looming death cross pattern: the 50-day SMA is on track to cross below the 200-day SMA, a classic long-term bearish signal.
The potential death cross, coupled with the ongoing downward trend in XRP since mid-January, suggests that further downside pressure could be in store. However, it’s worth noting that the reliability of the death cross in predicting future price movements has been mixed, both in Bitcoin and traditional markets.
As these two cryptocurrencies face critical technical levels, traders will be closely watching for any breakouts or reversals that could dictate their short- to medium-term direction.
