
Bitcoin Hits Death Cross, and There Are Only 2 Scenarios by Top Analyst
Bitcoin has officially formed a death cross on the daily chart—a grim signal that typically emerges when the market is experiencing heavy downside pressure. This recent formation came after several weak weeks throughout October and November, which pushed the price down below $100,000.
The death cross itself is a familiar technical event, characterized by the shorter moving average sliding below the longer one. In Bitcoin’s history, this crossover has served as a clear timing marker. It indicates whether the market is approaching a forming base or if there is still room for further decline before any stabilization appears.
Benjamin Cowen has framed the situation into two potential scenarios, both linked to a narrow time frame.
### First Scenario: Quick Rebound
Cowen pointed out that in previous cycles—when the broader trend was still intact—Bitcoin did not linger after a death cross. Typically, a reaction showed up within a week, prices stabilized, and it became clear that the signal appeared near an exhaustion zone rather than deep inside a drawn-out downturn.
This first scenario suggests a quick rebound that requires no special interpretation since constructive responses in the past arrived promptly and often formed the foundation for short-term recoveries.
### Second Scenario: Further Decline Before Recovery
The second scenario covers what happens if this prompt reaction does not materialize. In such cases, Cowen observed that Bitcoin typically moved lower before attempting any recovery. The bounce that followed generally reached only the 200-day Simple Moving Average (SMA), created a lower high, and confirmed that the broader trend had weakened.
The death cross signal is already visible on the chart, and the window for confirmation is narrow. The coming days will be crucial in determining which of these two paths the market is preparing to follow.
https://u.today/bitcoin-hits-death-cross-and-there-are-only-2-scenarios-by-top-analyst
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