A recently spotted Bitcoin (BTC) death cross pattern could herald more losses to come for the leading digital asset.
At the tail end of the weekend, BTC crashed below $80,000 for the first time in weeks, in tandem with the wider crypto market’s $300 billion downturn.
By press time on April 7, Bitcoin was changing hands at a price of $76,180, having marked an 8.25% decline within the last 24 hours of trading on strong volume.
A death cross chart pattern occurs when an asset’s 50-day simple moving average (SMA) crosses below its 200-day SMA, and tends to signal the beginning of an extended downturn.
The BTC death cross in question was highlighted by cryptocurrency analyst Ali Martinez in an April 7 X post, having coincided with Bitcoin’s drop below the $80,000 support level.
However, several counter-theses have been put forward, hinting that sentiment has not shifted entirely to the bearish side — at least yet.
Why the Bitcoin death cross isn’t a completely reliable signal
First, let’s deal with sentiment. As negative as recent developments have been, they are mostly tied to market-wide dynamics, and not weaknesses specific to Bitcoin.
Moreover, as outlined by pseudonymous analyst PlanB on April 6, April has historically been a good month for BTC’s returns, and if uncertainty relating to tariffs dissipates, prices could rebound in the months to come.
In addition, as noted by prominent technical analyst TradingShot, during the ongoing 2023 to 2025 bull cycle, a death cross formation has preceded major rallies at least four times.
Featured image via Shutterstock
