Bitcoin’s “Death Cross” Pattern Suggests Market Weakness Could Be Nearing a Bottom

Bitcoin may be approaching a “death cross” formation after a turbulent week, signaling that the downturn could be entering its final stages.

According to market analysts, a death cross occurs when short-term momentum weakens relative to long-term trendlines — typically when the 50-day moving average crosses below the 200-day moving average. While the term is usually associated with bearish sentiment, it has historically coincided with local market bottoms for Bitcoin during this cycle.

Bitcoin has fallen roughly 25% from its all-time high of $126,000, reached in October. If the current trend continues, it would mark the fourth death cross since the 2023 cycle began. Notably, each prior instance has aligned closely with major lows in the market:

  • September 2023: Bottom at $25,000
  • August 2024: Bottom at $49,000
  • April 2025: Bottom at $75,000, driven by uncertainty around U.S. tariff policies

Today, Bitcoin sits near $94,000, and the pattern resembles the previous three cycles where the market hit its bottom just before the death cross was confirmed. This parallel is prompting traders to question whether the same setup is forming again.

Last week alone, Bitcoin shed nearly 9%, largely due to a broader risk-off sentiment triggered by a pullback in major tech stocks. Many crypto investors remain heavily exposed to technology equities, causing selling pressure to spill over into digital assets.

The correction follows heightened volatility that emerged shortly after Bitcoin’s October peak. Days after setting its record, the crypto market experienced one of the largest liquidation events in digital asset history, partially sparked by unexpected tariff-related announcements from the U.S. administration.

Broader Industry Reflection: Blockchain Adoption Isn’t Uniform

Parallel to Bitcoin’s technical moves, the digital assets sector is revisiting the complexities of blockchain-based payments. While the industry often assumes that success in one area — such as cross-border transfers or merchant payments — will naturally extend to others, experts note that payments ecosystems are too fragmented for linear adoption.

Different verticals face distinct operational challenges, and blockchain may find traction through specialized footholds rather than becoming an all-encompassing payment layer. Use cases such as invoice reconciliation, loyalty settlement, treasury netting, and tax operations may emerge as strong candidates for blockchain utility long before general-purpose retail payments.

As Bitcoin approaches another potential inflection point, both traders and fintech observers are watching closely to see whether history repeats itself — and how broader blockchain adoption narratives evolve alongside the market’s technical signals.