- After an almost 25% fall in price, a death cross is about forming on the Bitcoin chart.
- History indicates that this might be a bottom, suggesting that a bounce is near.
- Traders are analyzing historical trends to confirm whether a rebound is near.
Bitcoin (BTC) is about to form one of the most crucial technical indicators that traders feared. In the recent past, this indicator denotes a bottom. The price of BTC has fallen around 25% from its October all-time high and now sits just below $94,000.
Recent Death Crosses Signaled Bottoms
Glassnode data shows that the 50-day moving average is on the verge of crossing below the 200-day moving average. This is forming what’s known as a “death cross.”
Traditionally, this signal is seen as a bearish shift in momentum. It shows that short-term price weakness has overtaken the longer-term trend. But in Bitcoin’s current cycle, each death cross has aligned with a key local bottom.
Each time during the last three crosses, Bitcoin found support before the crossover was complete. In September 2023, Bitcoin plunged under $25,000, but recovered. It also hit a bottom of just under $49,000 in August 2024 following the unwind of the yen carry trade.
Uncertainty regarding President Trump’s tariffs dropped it to less than $75,000 in April 2025. In all these times, buyers intervened, and the price rebounded after a few weeks.
Source: Glassnode
Also Read | Bitcoin Below $100,000 Sends Market Into Extreme Fear
Investors Eye Rebound Potential
Bitcoin’s current 41-day correction is the fourth such drawdown since the cycle began in 2023. This decline has been sharp. but less severe than the April drop. This decline lasted 79 days and led to a 30% decline from peak levels.
Current pricing patterns suggest that while more downside may occur, a reversal could be near if past trends hold. There are also comparisons to what happened in 2019.
After the United States government reopened in January 2019, Bitcoin fell more than 9% within five days. It took about two weeks for the price to stabilize and begin recovering.
Today, a similar drop has happened after the government reopened on November 12. Bitcoin has already lost as much as 10% in the aftermath.
While the death cross may scare some investors, others see it as a buying opportunity. The death cross may indicate oversold situations, particularly when this pattern is taking shape following a long-term correction.
The current confluence of macro pressure and technical positioning has put short-term sentiment into “extreme fear” territory, according to market trackers.
Also Read | Bitcoin Consolidates Near $100K Amid Seller Exhaustion and Weak Institutional Flows
