Bitcoin ($BTC) experienced a sharp recovery yesterday, rising to $70,000. However, this recovery did not last, and the price fell back to the $66,000-$67,000 level.
Although hopes for a further rise have increased after the recent surge, analysts are issuing a death cross warning for Bitcoin.
Accordingly, the death cross in Bitcoin signals a risk of a further 30% drop from current levels.
Analyst Mister Crypto pointed to the death cross, stating that $BTC has now entered the most brutal phase of the bear market.
Bitcoin Faces Further Decline!
In Bitcoin, the 50-day simple moving average (SMA) has fallen below the 200-day SMA, forming a “death cross” pattern that signals further decline.
Accordingly, $BTC/USD has given a new “death cross” signal on its three-day chart. This means that this rare bearish signal has appeared for the first time since June 2022.
The last death cross, seen in 2022, caused the Bitcoin price to drop by approximately 50%, falling to $15,480. Citing historical data, the analyst added that after the previous three death crosses, $BTC fell by an average of 80% from its peak.
Bitcoin is currently about 50% below its recent peak of $126,000. Historically, this means there’s a possibility Bitcoin could fall as low as $45,000.
*This is not investment advice.
