Bitcoin Death Cross Sparks Fears of 70% Price Crash

Source: CryptoNewsNet Original Title: Bitcoin (BTC) Death Cross Sparks Fears of 70% Price Crash Original Link: Bitcoin (BTC) is trading at around $89,000 as of press time. Over the past 24 hours, the price has dipped slightly, while the 7-day change shows a drop of 7%. With trading volume reaching $39 billion, traders are watching the charts as new technical signals suggest more downside may follow.

Death Cross Appears Again

Crypto analysts reported that Bitcoin has printed a 2-day death cross. This occurs when the 50-period moving average crosses below the 200-period moving average. It’s a pattern that many traders view as a bearish sign.

In 2014, 2018, and 2022, the same death cross appeared in a similar position. After each one, Bitcoin dropped between 50% and 70%. Analysts pointed out that each of these drops was preceded by a short bounce. “That bounce has often been the bull trap,” they noted, referring to a brief rally that tends to lure traders back in before the next leg down.

Moreover, another analyst posted that Bitcoin is still moving inside a rising wedge that has been developing for years. The price recently touched the upper trendline and has since pulled back. On the current chart, a bear flag is now forming within that wedge.

Bear flags often show up after a fast move down. If the lower part of the pattern breaks, the asset tends to continue falling. The analyst noted that if the current flag breaks lower, the next key level could be the bottom of the wedge. This trendline has acted as support during previous corrections.

Bitcoin Price Targets Between $40K and $60K

Another market watcher suggested that the current cycle looks almost identical to 2021. They stated that “if the 4-year cycle is still in play, BTC will dump to $40,000 in two weeks.”

Veteran traders also mentioned that if the current setup breaks lower, Bitcoin could reach between $58,000 and $62,000.

However, traders on prediction platforms estimate a 64% chance that Bitcoin will break $100,000 before June 2026. This shows that some are still expecting higher prices long-term despite short-term risks.

Meanwhile, analysts reported that large holders have been buying Bitcoin heavily during the recent dip. These wallets hold between 1,000 and 10,000 BTC. “The bottom is very close now,” they posted.

They also mentioned that in both 2017 and 2021, similar accumulation phases came just before major rallies. While traders debate whether the top is already in, some believe the market is setting up for a bigger move.