Bitcoin's death cross pattern—when the 50-day exponential moving average crosses below the 200-day EMA—formed in mid-November at $93,000 and remains in effect despite temporary breakouts. Yesterday,
$BTC dropped 6.4% to an intraday low of $83,383, the weakest level since December, accompanied by $1.1 billion in Bitcoin ETF outflows.
The technical setup is turning increasingly bearish. While
$BTC briefly traded above the 200-day EMA earlier in January, it failed to sustain those levels. The current price around $87,000 sits below both the 100-day EMA ($96,000) and 200-day EMA ($99,500), which now act as overhead resistance. Support sits at $88,000-$89,000, with the next major zone at $74,000-$76,000 aligned with the 161.8% Fibonacci extension.
What complicates this is the macro backdrop—risk-off sentiment driven by geopolitical tensions, tariff threats, and potential government shutdowns has pushed capital into gold and safe havens. Meanwhile, leveraged liquidations are accelerating the downside. Bulls need $94,000 reclaimed with conviction to escape the death cross and set up a potential golden cross reversal.
#bitcoin #BTC #DeathCross #TechnicalAnalysis #CryptoVolatility