Bitcoin Death Cross That Last Preceded A 66% Drop Is Back

A cryptocurrency analyst, Ali Martinez, has identified a bearish technical signal in Bitcoin's recent price action. He noted a crossover between the 21-day and 50-day Simple Moving Averages (SMAs) on Bitcoin's daily chart. This specific crossover, where the shorter-term SMA falls below the longer-term one, has historically preceded significant price declines. Martinez highlighted past instances of this "death cross" which resulted in drawdowns ranging from 54% to 69%. The most recent occurrence in 2022 led to a nearly 66% drop towards the bear market bottom. The analyst suggests that if this pattern repeats, Bitcoin could face further downward pressure. Such a bearish trend might also put Bitcoin at risk of breaching the Realized Price-to-Liveliness Ratio. This on-chain metric, currently around $87,500, combines an investor's cost basis with long-term holder behavior. Bitcoin briefly dipped below this level recently but has since recovered. Historically, falling below this ratio has preceded a move towards the Realized Price, which stands at $56,000. At the time of reporting, Bitcoin was trading around $89,500.