Bitcoin price may have officially confirmed its entry into a bear market after descending to 80,000 dollars during Friday’s session. Renowned analyst Rekt Capital warned that bullish structures are automatically invalidated when the macroeconomic trend shifts, highlighting the appearance of the feared death cross. This technical event has generated an immediate wave of concern among traders, who observe how key indicators suggest a prolonged correction.
The BTC/USD pair closed below its 50-week moving average, losing a crucial level to sustain the positive long-term structure. Simultaneously, the 50-day simple moving average crossed below the 200-day one, forming this bearish technical signal for the first time since January. On the other hand, Glassnode data indicates that realized losses surpassed 800 million dollars, driven mainly by the aggressive capitulation of short-term holders.
Will the historic price collapse repeat itself after this technical signal?
Historically, this chart indicator has preceded severe price crashes of between 64% and 77% in previous market cycles. In January 2022, an identical formation anticipated the drop toward 15,500 dollars during the FTX exchange collapse. Likewise, the current inability to reclaim the exponential moving average suggests that the macro trend has changed radically, leaving buyers vulnerable to a much deeper and lasting correction.
The speed of these losses reflects a significant washout of marginal demand as recent buyers quickly unwind their positions at a loss. On the other hand, CryptoQuant analyst IT Tech noted that failing to reclaim the cost basis confirms the negative trend. This directly impacts the sector’s economy, as the weekly SuperTrend indicator also issued a sell signal that usually marks the official start of crypto winters.
The market faces a decisive test to avoid an extension of the drop toward the April support located at 74,500 dollars. Short-term investors continue panic selling, which adds fuel to the experts’ pessimistic predictions. The validation of the death cross forces a reevaluation of risk strategies given the high probability that the current correction will deepen significantly in the coming trading weeks.
