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Bitcoin Approaching Death Cross Marking Lows, Analyst Warns
Bitcoin's Upcoming Death Cross: Implications and Historical Context
Bitcoin is approaching a "death cross," where the 50-day simple moving average (SMA) falls below the 200-day SMA. Analyst Kevin (Kev Capital TA) suggests this indicator might not be as ominous as it sounds.
- Historically, death crosses in the current cycle have marked the end of corrective phases rather than severe downturns.
- In 2023, after a post-$30k range, a death cross preceded a significant rally from approximately $25k to $73k.
- In 2024, despite initial losses, Bitcoin rebounded, reaching about $110k amid favorable market conditions.
- The 2025 death cross occurred amid corrections but marked a recovery point, with modest gains thereafter.
The lagging nature of SMAs means the death cross reflects past price movements. The key question remains whether Bitcoin can reclaim levels like $106.8k on weekly closes to potentially achieve new all-time highs.
Current Market Dynamics
- Bitcoin trades at $103,540, surprising some given recent sell pressures.
- Broader macroeconomic factors include restrictive monetary policies and AI-led equities absorbing risk flows.
- Upcoming central-bank announcements could influence market movements.
The upcoming death cross may signal another buying opportunity rather than a downturn, contingent on Bitcoin's ability to surpass key resistance levels.
The historical performance during similar events has shown resilience, with each death cross coinciding with recovery periods, challenging the notion of an inevitable decline.