Bitcoin’s Death Cross History Signals Looming Correction Risk
Based on the exclusive on-chain data, the present price progression indicates a death cross for Bitcoin ($BTC). Previously, each death crossing between the 10-week simple moving average (SMA) and 50-week simple moving average (SMA) has triggered massive corrections. While the past declines ranged between 53% and 67%, the latest instance also raises the probability of such a development in the near term.
Specifically, in September 2014, Bitcoin went through a 67% plunge, setting precedent for how extreme such corrections can be. Following that, in June 2018, another 54% dip took place. In the same vein, March 20220 saw a 53% drop when the market was experiencing a global turmoil. Subsequently, in January 2022, the flagship crypto coin experienced a 64% correction, reaffirming the pattern of noteworthy downturns following such technical signals. Keeping this in view, there is a high probability for Bitcoin to go through a major correction.
Technical Patterns Fuel Likely Downturn Concerns
According to Ali Martinez, while Bitcoin ($BTC) is undergoing a crucial juncture, it faces the question of whether another correction is to take place. The frequent past patterns raise the possibility of such an event, especially within the 10W-50W SMA range. Nonetheless, if $BTC holds above the current $87,350 mark or slides down remains to be seen in the coming days.
