Bitcoin 'Death Cross' Warns of 35% Decline Over the Next Month
Bitcoin's three-day chart shows a 'death cross,' historically preceding an average 35% drop, despite recent ETF inflows.Summary
Bitcoin (BTC) has registered a 'death cross' on its three-day chart, the first since June 2022, a pattern where the 50-period moving average crosses below the 200-period moving average, which historically signals near-term weakness. Past occurrences suggest an average downside of around 35% in the following month, with one instance in 2022 preceding a 50% slide. This technical signal suggests BTC might be entering the "most brutal part of the bear market," with some analysts targeting a bottom between $30,000 and $45,000.
Despite this bearish technical indicator, US spot Bitcoin ETFs attracted $458.20 million in net inflows on Monday, indicating renewed dip-buying amidst volatility from escalating tensions in the Middle East. Former BitMEX CEO Arthur Hayes suggested that prolonged US involvement in Middle East conflicts could eventually pressure policymakers toward easier monetary policy, potentially boosting Bitcoin prices.
(Source：Cointelegraph)