Bitcoin Approaches Death Cross Amid Market Correction
Bitcoin's 50-day moving average, currently around $110,669, is poised to cross below its 200-day moving average of about $110,459, potentially triggering a death cross. This technical pattern often signals weaker short-term momentum but has a debated reliability as a predictive indicator.
Bitcoin has experienced a roughly 25% decline from its October all-time high near $126,000, with prices near $94,000 following a 41-day correction period. This potential death cross would represent the fourth such occurrence since the 2023 cycle began, with previous instances aligning with major local bottoms: September 2023 near $25,000; August 2024 near $49,000; and April 2025 below $75,000.
The current drawdown is less severe than the April 2025 correction, which saw a 30% drop to below $75,000 lasting about 79 days.
Recent market movements have occurred in the context of the US government shutdown ending on November 12. Historically, following the 2019 shutdown reopening, Bitcoin fell more than 9% within five days but recovered by February 2019. This week, Bitcoin has already declined about 10% since the reopening, leaving uncertainty whether the same recovery pattern will repeat.
