Bitcoin Faces Potential Death Cross Formation Amid Declining Market Sentiment

Bitcoin’s price trajectory is showing concerning technical signals as the 50-day moving average approaches a bearish crossover with the 200-day moving average - a pattern traditionally known as a ’death cross’ that often precedes extended downtrends. This technical development coincides with a notable drop in the Crypto Fear & Greed Index, which has retreated from neutral territory back into fear zone, suggesting weakening investor confidence. Market analysts are closely monitoring the $60,000 support level, as a sustained break below this psychological threshold could accelerate selling pressure. The current market conditions reflect growing uncertainty among traders, with derivatives data showing reduced open interest and a contraction in trading volumes across major exchanges. This confluence of technical and sentiment indicators raises questions about Bitcoin’s near-term price stability as the market digests recent macroeconomic developments and regulatory updates.

Bitcoin price technical analysis

The daily chart shows Bitcoin remains under pressure. Price action has stalled around $84,400, a key level just beneath the 50-day and 200-day Exponential Moving Averages. A potential crossover of these two indicators could form a death cross, a bearish technical signal suggesting further downside.

Bitcoin also continues to trade below a descending trendline that connects the major swing highs since January 20. It’s currently NEAR the lower boundary of its trading range, as defined by the Murrey Math Lines.

Given these signals, there’s a risk that BTC could resume its downtrend, with sellers potentially targeting the recent double-bottom support at $76,800. However, this bearish outlook would be invalidated if Bitcoin breaks above the descending trendline and both moving averages. A sustained move above these resistance points would also negate the death cross setup and point to a possible bullish reversal.