An analyst has pointed out how Bitcoin could be approaching a death cross between the 50-day and 200-day SMAs on the 3-day chart.
Bitcoin Is Potentially Nearing A Death Cross On The 3-Day TimeframeBelow is the chart shared by Martinez that shows the pattern displayed by these two SMAs for the 3-day Bitcoin price.
As is visible in the graph, the 50-day SMA of the 3-day Bitcoin price saw a cross under the 200-day SMA in each of the last three cycles. All of these crossovers preceded bearish price action.
More specifically, the 2014 crossover led to a drawdown of 52.19% for the asset, the 2018 one to 50.56%, and the 2022 one to 45.91%. Interestingly, these price declines all led to the bottoms of their respective bear markets. “Since 2014, the death cross between the 50 and 200 simple moving averages on the 3-day chart has consistently preceded the final leg down of a Bitcoin $BTC bear market,” noted the analyst.
If the two lines continue to follow the current trajectories, the analyst has estimated that a death cross could occur on February 27th. Given the past trend, such a death cross could take Bitcoin into its final leg for the bear market. It only remains to be seen, however, whether the current cycle will actually follow a similar pattern or if it will show divergence.
In the past, a shift toward loss realization on the Bitcoin network has generally lasted for over six months before a return of liquidity has occurred.
BTC PriceBitcoin has erased some of its recent recovery over the past couple of days as its price is now trading around $63,300.
