Jan 3, 2026
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Bitcoin Death Cross Signals Potential 50%-60% Price Correction
As 2025 concluded, Bitcoin ended trading over 30% below its peak, with a death cross indicator signaling potential price corrections. Currently, Bitcoin is valued above $89,200 following the crossover of its 10-week and 50-week SMAs on December 8.
Potential 50%-60% Correction for Bitcoin
- The death cross has historically led to significant declines: 67% in September 2014, 54% in June 2018, 53% in March 2020, and 64% in January 2022.
- Analyst Ali Martinez suggests a possible correction between 50% and 60%, forecasting prices between $50,000 and $38,000.
Two Scenarios for Bitcoin's Future
- Bitcoin has been around $85,000, following a decline from October highs above $126,000.
- USDT dominance has increased, potentially affecting Bitcoin's trajectory.
- Mags proposes two scenarios:
- Bullish: Decline in USDT dominance could lead to a Bitcoin price surge and new all-time highs.
- Bearish: A weakened broader market may cause a slow distribution pattern and gradual Bitcoin decline.
