Bitcoin (BTC) is currently valued around $89,000. Recently, it has dipped slightly, reflecting a 7% decrease over the past week. Traders are closely monitoring the market due to concerning signs that suggest the possibility of further declines.

Death Cross Alert

Crypto Crew University highlighted the emergence of a 2-day death cross, a bearish indicator marked by the 50-period moving average crossing below the 200-period moving average. Similar crosses in 2014, 2018, and 2022 led to declines ranging from 50% to 70%. They noted that these drops usually follow a short bounce, often termed a ‘bull trap.’

“That bounce has often been the bull trap,” they warned, as it typically tricks traders into re-entering the market before significant drops occur.

Bitcoin Death Cross

Another analyst, Titan of Crypto, explained that Bitcoin is tracing a rising wedge pattern, with recent price movements suggesting a potential bear flag is forming within it. If the lower boundary of the wedge breaks, the subsequent target could lead to further substantial declines.

Price Predictions

Market watcher Lofty remarked that the current cycle appears similar to that of 2021.

“If the 4-year cycle is still in play, $BTC will dump to $40,000 in two weeks.”

Veteran trader Peter Brandt has also indicated that if the current trends continue downward, Bitcoin might fall within the range of $58,000 to $62,000. In contrast, traders on prediction platform Kalshi estimate a 64% chance that Bitcoin will surpass $100,000 before June 2026, indicating optimism amidst short-term concerns.

Additionally, Crypto Waterman indicated that significant holders have been accumulating Bitcoin during recent downturns, which historically precedes major market rallies.

“The bottom is very close now,” they commented.

These insights suggest a fascinating yet turbulent phase for Bitcoin as it navigates potential price shifts.