Bitcoin Drops 20% Amid Death Cross, $1.4B Liquidated

Bitcoin (BTC), the leading cryptocurrency by market capitalization, has experienced a significant technical event known as a "death cross." This pattern, where the 50-day moving average falls below the 200-day moving average, is widely regarded as a signal of prolonged downward momentum. The death cross occurred amidst a broader market sell-off that has resulted in substantial liquidations, totaling over $1.4 billion in the past 24 hours. This event marks a notable shift from the bullish sentiment that characterized the beginning of the year, when Bitcoin reached an all-time high of $109,114 on January 20.

The death cross has coincided with a severe market downturn, with Bitcoin's price dipping to as low as $74,420, representing a nearly 20% loss for major tokens. At the time of reporting, Bitcoin was trading at $77,172, down 6.84% over the past 24 hours. This decline has been ongoing since April 5, and if the trend continues, it will mark the third consecutive day of losses. The term "Black Monday" has been trending, drawing parallels to the historic market crash of October 19, 1987, when the Dow Jones Industrial Average lost roughly one-quarter of its value in a single session. The current market sell-off is attributed to macroeconomic uncertainties and aggressive liquidations, prompting investors to seek safer assets.

This technical event has raised concerns among investors, as it signals a potential prolonged period of downward momentum for Bitcoin. The death cross pattern is not unique to Bitcoin; other cryptocurrencies, such as Cardano, are also approaching similar technical indicators. However, the focus remains on Bitcoin due to its dominant position in the market. Analysts are closely monitoring the situation, with some predicting that Bitcoin could dip to the next strong support level near $73,000 to $74,000 if the bearish trend continues. The broader market volatility and the potential for further declines have added to the uncertainty, making it a critical period for crypto investors.