Bitcoin Death Cross in 48 Hours — Is This the Real Bottom or a Drop to $70K?
Bitcoin is nearing a Death Cross, prompting debate on whether it signals a market bottom or a further drop toward $70,000.Summary
Bitcoin (BTC) is approaching a technical Death Cross, where the 50-day Simple Moving Average (SMA) crosses below the 200-day SMA, expected within 48 hours or mid-November according to some analysts. Historically, this pattern has often coincided with market bottoms, with past events leading to local bottoms within days and subsequent rallies of at least 45%. Some analysts suggest that if the recent dip below $100,000 was the bottom, BTC could rally to $145,000.
However, a more cautious view suggests that the average maximum loss following a Death Cross is over 30% within 12 months, potentially leading to a retracement toward the $70,000 region before a new upward cycle resumes. Analysts stress that the Death Cross is primarily a timing indicator, not a definitive signal for a top or bottom.
Traders are advised to manage risk carefully, monitor other indicators like volume and RSI, and wait for confirmation, such as a daily close above the SMA50 with rising volume, before making significant allocations. The higher-probability scenario currently leans toward a short-term capitulation followed by the cross and then a strong rebound.
(Source：BeInCrypto)