Bitcoin Hits Death Cross, and There Are Only 2 Scenarios by Top Analyst

Bitcoin has officially formed a death cross on the daily chart, a bearish signal that usually appears when the market is under heavy pressure. This time, the formation came after several weak weeks in October and November that pushed the price below $100,000.

The crossover itself is familiar—the shorter moving average flowing below the longer one—but in The history of Bitcoin it worked as a clear timing marker, the kind that tells you if the market is sitting near a forming base or if it still has room to fall before any kind of stabilization.

Benjamin Cowen put the whole situation in two scenarios, both related to a restricted time. He pointed out that in earlier cycles, when the broader trend was still running, Bitcoin did not wait for a death cross. A reaction usually appeared in a week, the price stabilized, and the chart made it obvious that the signal had landed near an exhaustion zone rather than at a greater depth.

This is the first scenario here: a rapid rebound that does not require special interpretation, simply because constructive responses in the past came without delay and formed the basis for short recoveries.

Second scenario for Bitcoin

The second scenario covers what happens if that reaction does not appear. Cowen said that in these cases, Bitcoin typically moved lower before attempting any recovery, and that the ensuing rebound usually reached the 200-day SMA, created a lower high and confirmed that the broader trend had already cooled.

You may also like it

The signal is already on the chart, the window for confirmation is small, and it is the next few days that will decide which of the two paths of the market is in line.