Bitcoin’s Death Cross Confirmation May Mean BTC Is Officially In A...

A rare death cross has been confirmed on Bitcoin’s price chart, suggesting that the bear market has just started. Will dip buyers be able to defy the trend?

Bitcoin’s death cross, which previously led to 64%-77% BTC price declines, has flashed again.

Mounting selling pressure is prompting many investors to sell their BTC holdings at a loss.

Bitcoin (BTC) may have confirmed its entry into a bear market after the price dropped to $80,000 on Friday. This view is reinforced by a convergence of technical indicators that have historically preceded extended declines.

The BTC/USD pair closed below its 50-week moving average on Sunday, a level crypto analyst Rekt Capital has been closely watching, saying that the “price will need to reclaim it promptly on a relief rally to protect the structure.”

#BTC It's going to get complicated for Bitcoin to maintain bullish market structure if it performs a Weekly Close below the 50-week EMA later todayIf the Weekly Close indeed occurs below the 50 EMA, price will need to try reclaim it promptly on a relief rally to protect the… https://t.co/kxqpfUXC91 pic.twitter.com/SNp1Lxj0Dx

“Bitcoin wasn’t able to reclaim the 50-week EMA,” the analyst wrote in a Friday post on X, adding:

Rekt Capital was referring to Bitcoin’s drop below key support lines, even as the price slid below the 100-week moving average to reach a six-month low of $80,500 on Friday.

Related: Bitcoin slump to $86K brings BTC closer to ‘max pain’ but great ‘discount’ zone

Meanwhile, the price confirmed a “death cross” on its daily chart at the end of last week, a technical pattern that has previously preceded significant price declines.

Source: CoinTelegraph