Dead Bitcoin Crossroad: When Does the Signal Turn into Action?

In recent days, Bitcoin has been showing conflicting signals — technical indicators suggest a potential trend reversal, yet the price continues to stay high. A detailed analysis of charts and resistance levels helps to understand whether this movement is the beginning of a long-awaited decline or just a temporary rebound after a sharp drop.

Technical Signal: Dead Cross on Daily Charts

On the daily Bitcoin chart, an obvious dead cross is forming, which has historically often preceded the establishment of a sustained downtrend. Such a signal is usually considered a warning of a possible overvaluation of the asset and subsequent correction. However, in this case, the price is still holding positive positions, raising the question: is this signal enough for a reversal?

Why the decline hasn’t started yet: market logic

A few days ago, Bitcoin experienced a significant drop of about 10,000 points. Such a sharp correction is usually accompanied by profit-taking from mid-term investors and a return of short-term speculators to the market. Therefore, the current upward movement is viewed as a natural counterbalance to the overly aggressive decline, rather than a peak signal. The overall trend remains neutral to bearish, despite local rebounds.

The Federal Reserve is expected to maintain a tight stance on interest rates in the coming weeks, creating a negative background for risky assets.

Resistance levels and entry points for short positions

The current Bitcoin price is around $83.93K (up 1.14% over 24 hours). Practical resistance levels to watch: 9.12-9.13 (in relative units of analysis). When retesting these levels, there is an opportunity to open short positions, as they may turn into breakout points.

For Ethereum, the entry point is focused on the resistance level of 3050-3060. When the price touches this level, speculators may consider a short position as an attractive alternative.

WLFI shows interesting trading potential. The current coin price is at $0.15, but a move toward previous highs at $0.185-$0.19 is expected. Upon reaching this level, the plan is to open short positions. Daily trading techniques suggest executing trades twice a day based on such signals, while monitoring recovery from the support level around $0.175.

Proper use of crossover signals and discipline in working with defined resistance levels are exactly what makes trading profitable.