Is Bitcoin Bottom Near? BTC Approaches 'Death Cross' as Market Tests Key Historical Pattern

Bitcoin is currently about 25% down from its October all-time high of around $126,000, approaching a 'death cross'—a bearish technical indicator where the 50-day moving average falls below the 200-day moving average. Despite this bearish signal, the occurrence of the death cross in previous cycles has often coincided with major local bottoms, raising speculation about whether a similar outcome will follow now. Historically, bitcoin has shown resilience, bouncing back from significant downturns; for instance, it hit local lows of $25,000 in September 2023 and $49,000 in August 2024 before recovery. Current market conditions reflect a governmental reopening similar to January 2019, which previously resulted in a significant short-term drop in prices. As BTC is currently priced at approximately $94,000, traders are questioning if the historical trend will repeat or if further declines are imminent, with analysts suggesting that the current 41-day correction may still have room for deeper losses compared to previous cycles.

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