Bitcoin price nears death cross as gold safe haven status continues

While Bitcoins rebound is encouraging, it now faces the risk of forming a death cross — a bearish technical pattern that occurs when the 50-day moving average crosses below the 200-day moving average.

The gap between these two averages has narrowed to just 472 points, signaling a potential crossover. If this happens, Bitcoin could resume its downward trend and potentially retest this months low of $74,500 — about 13% below current levels.

On the other hand, a breakout above both moving averages would invalidate the death cross and signal more upside, potentially pushing BTC toward the psychological level of $90,000.

Adding to the risk, the S&P 500 index has also formed a death cross, a signal that historically points to more downside. The last time this occurred was in 2022, when the index fell by 17%.

Since Bitcoin and equities are both considered risk-on assets, a bearish signal in the stock market could weigh further on Bitcoins price.

Gold maintains its edge as a safe haven

Gold price chart | Source: TradingView

Meanwhile, gold continues to perform well as investors seek out safe-haven assets. The precious metal has surged more than 20% this year, reaching a record high of $3,245. Goldman Sachs recently raised its gold price target to $3,700.

The rally has been fueled by strong demand from central banks, retail investors, and institutions. Countries like India, Turkey, Russia, and China have continued accumulating gold throughout 2024.

Similarly, top gold ETFs like the GLD and IAU have also attracted more inflows from retail and institutions. Therefore, there are signs that investors prefer gold to American stocks, bonds, and Bitcoin for their safety. The Swiss franchas also become a top safe haven as it surged to the highest point in over a decade.