Bitcoin traders are on high alert as the cryptocurrency inches closer to a “death cross” formation — a technical indicator that often suggests a potential downtrend. The pattern occurs when the 50-day moving average dips below the 200-day moving average, hinting at weakening momentum.
This development comes at a time when crypto prices are struggling to regain strength after recent market volatility. Many investors fear that the death cross could trigger additional sell-offs, especially among short-term holders. However, some analysts believe long-term fundamentals remain intact, pointing to rising institutional interest and upcoming regulatory clarity.
Despite mixed sentiment, market participants are advised to watch key support levels closely in the coming days.
