Bitcoin Nears Death Cross That Preceded Final Bear Market Legs

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. An analyst has pointed out how Bitcoin could be approaching a death cross between the 50-day and 200-day SMAs on the 3-day chart. Bitcoin Is Potentially Nearing A Death Cross On The 3-Day Timeframe In a new post on X, analyst Ali Martinez has talked about a death cross on Bitcoin’s 3-day price chart. A “ death cross ” popularly refers to a bearish signal produced by a crossover between two simple moving averages (SMAs) of an asset. Typically, a death cross involves the longer SMA moving above the shorter one. In the context of the current topic, the SMAs of relevance are the 50-day and 200-day versions. Related Reading Bitcoin Capitulation Persists As Short-Term Holders Realize $0.48B Daily Losses 21 hours ago Below is the chart shared by Martinez that shows the pattern displayed by these two SMAs for the 3-day Bitcoin price. Looks like a bearish crossover between the lines has led to drawdowns | Source: @alicharts on X As is visible in the graph, the 50-day SMA of the 3-day Bitcoin price saw a cross under the 200-day SMA in each of the last three cycles. All of these crossovers preceded bearish price action. More specifically, the 2014 crossover led to a drawdown of 52.19% for the asset, the 2018 one to 50.56%, and the 2022 one to 45.91%. Interestingly, these price declines all led to the bottoms of their respective bear markets. “Since 2014, the death cross between the 50 and 200 simple moving averages on the 3-day chart has consistently preceded the final leg down of a Bitcoin $BTC bear market,” noted the analyst. Jumping to the present, BTC has faced a bearish shift in recent months with a notable drawdown in its price. This has resulted in the 50-day SMA witnessing a decline toward the 200-day SMA. As a zoomed-in chart shared by Martinez in another X post shows, there is now not much distance left between the 50-day and 200-day SMAs of the 3-day Bitcoin price. A death cross could be approaching for BTC | Source: @alicharts on X If the two lines continue to follow the current trajectories, the analyst has estimated that a death cross could occur on February 27th. Given the past trend, such a death cross could take Bitcoin into its final leg for the bear market. It only remains to be seen, however, whether the current cycle will actually follow a similar pattern or if it will show divergence. Related Reading Another $438M In Crypto Longs Gone As Bitcoin, Altcoins Pull Back 1 day ago In some other news, the Realized Profit/Loss Ratio has slipped into the loss region recently, as on-chain analytics firm Glassnode has highlighted in an X post . How the 90-day MA value of the metric has changed over the course of history | Source: Glassnode on X In the past, a shift toward loss realization on the Bitcoin network has generally lasted for over six months before a return of liquidity has occurred. BTC Price Bitcoin has erased some of its recent recovery over the past couple of days as its price is now trading around $63,300. The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView Featured image from Dall-E, chart from TradingView.com