A significant technical indicator, known as a death cross, has been confirmed in Bitcoin’s price chart, pointing towards a potential bear market beginning. The dip in price observed, dropping to $80,000, marks a worrying trend for investors.

Key Points

• The recent death cross has historically led BTC prices to decline by 64% to 77%.
• Increased selling pressure is causing many holders to sell at a loss, raising concerns.

Bitcoin’s recent performance may indicate that the bear market is upon us after the price dipped below critical support levels. This drop has drawn attention to technical indicators usually linked with further price declines. According to crypto analyst Rekt Capital, the BTC/USD pair concluded below the significant 50-week moving average, a point of focus for many investors watching Bitcoin’s price trends.

“It will be challenging for Bitcoin to uphold a bullish market structure if it closes below the 50-week EMA later today.” - Rekt Capital

Analyzing Bitcoin’s past behavior, analyst Mister Crypto notes that every Bitcoin cycle concluded with a death cross. He questions:

“Why would this time be different?”

This analysis raises alarms, especially considering Bitcoin’s volatile history where the death cross in early 2022 led to substantial price drops.

Realized Losses Surpass $800 Million

As a result of heightened selling activity, realized losses among Bitcoin holders have surged to levels reminiscent of the FTX collapse in November 2022, with Glassnode reporting accumulated losses exceeding $800 million over the past week.

Furthermore, analysts emphasize that unless the price recovers to its cost basis quickly, a deeper bearish trend could unravel.

This article does not offer financial advice and readers should conduct thorough research before making investment decisions.