Bitcoin News Today: Bitcoin's Death Cross Sparks Debate: Bear Market Warning or Buying Opportunity?

Bitcoin's price has plummeted 33% from its October peak of $126,198 to $84,000, triggering a "death cross" as the 50-day moving average fell below the 200-day line. This technical signal, historically followed by double-digit gains within months, has sparked debate over whether the drop reflects a bearish trend or a buying opportunity. Market sentiment has hit an "extreme fear" level of 11 on the Fear and Greed Index, the lowest since July 2023, suggesting a potential inflection point for long-term investors.

Amid the volatility, a high-profile whale with a 100% win rate tripled its short position in Bitcoin on November 27, generating $11.29 million in profits over 50 days. The trader, identified through on-chain analytics, bet against Bitcoin at an average entry price of $89,765.6, with a position size of $90.3 million. This move highlights the growing role of sophisticated market participants in shaping price action, particularly as institutional flows remain mixed.

Bitcoin spot ETFs have seen alternating inflows and outflows this week, reflecting institutional indecision. While Wednesday's inflow of $75.47 million briefly reversed a selloff, Thursday's outflow of $903.11 million-the largest since late February-underscored ongoing uncertainty. Cumulative ETF inflows remain at $57.37 billion, however, aligning with levels seen before Bitcoin's October all-time high. Harvard University's $442.8 million exposure to Bitcoin via BlackRock's IBIT shares also suggests institutional appetite for the asset, even as retail panic intensifies.

Bitcoin's technical indicators add to the bearish narrative. The MACD has turned downward, and the price remains below critical resistance at $90,000. Analysts note that historical death crosses, while lagging indicators, have often signaled local bottoms followed by 26% median returns within three months. However, a breakdown below $85,000 could test deeper support levels.

The interplay between retail panic and institutional buying will likely determine Bitcoin's next move. While short-term volatility persists, the accumulation phase seen in late September-when ETF flows stabilized before the October peak-suggests that patient investors may yet find value. For now, the market remains in a delicate balancing act between macroeconomic caution and speculative optimism.