Bitcoin News Today: Crypto's Death Cross: Rebound Signal or Prelude to Collapse?

Bitcoin, Ethereum, and XRP face mounting pressure as the cryptocurrency market grapples with a deepening selloff fueled by a technical bearish signal known as the "death cross" and waning institutional demand. The 50-day moving average for Bitcoin has nearly dipped below its 200-day counterpart, a development historically associated with prolonged downturns, though past cycles suggest it may also signal a potential rebound according to market analysis. The asset now trades near $91,000, down over 25% from its October peak of $126,000, with analysts divided on whether this marks a cyclical top or a temporary correction.

The death cross coincided with a "megaphone" pattern, a rare formation where volatile price swings create a broadening top. This structure, observed in Bitcoin's chart, suggests a measured move to $75,000, aligning with prior support levels from April 2025 according to technical analysis. Compounding concerns, U.S. spot ETF flows have turned choppy, with recent outflows exacerbating liquidity strains. Blockchain data also revealed over 10,600 BTC ($953 million) moved from Mt. Gox wallets, though analysts clarified these were administrative rather than market sales according to blockchain data. Despite this, the perception alone triggered $1 billion in forced liquidations across trading platforms according to market data.

Historical context offers mixed signals. Since 2023, every death cross has coincided with a major market bottom, such as the $25,000 low in September 2023 and the $74,400 support in April 2025 according to market analysis. However, the current environment differs: Bitcoin's seasonal outperformance in October and November-a historical strength-has faltered, and macroeconomic anxieties around U.S. rate paths have dampened risk appetite according to technical analysis. Analysts like Benjamin Cowen note that if the death cross signals a cycle top, Bitcoin could face a "lower high" before testing the 200-day moving average, while a swift rebound above $103,000 would reset bullish odds according to market commentary.

On-chain metrics underscore weak participation. Glassnode data shows rising circulating supply amid falling prices, indicating increased selling pressure according to on-chain analysis. Active address counts have also plummeted, mirroring the price decline. Meanwhile, the Relative Strength Index (RSI) has entered oversold territory, hinting at potential short-term rebounds, though the broader trend remains bearish as Bitcoin remains below key resistance levels like $100,000 according to technical indicators.

Market observers remain split. Tom Lee of BitMine argues Ethereum could enter a "supercycle" akin to Bitcoin's, but critics question its unique utility according to market analysis. Long-term investors, however, emphasize structural adoption and institutional participation as foundational to multi-year growth according to market sentiment. For now, the focus remains on Bitcoin's ability to reclaim the $90,000–$93,000 zone and stabilize ETF flows-a test that could determine whether this death cross becomes a buying opportunity or the prelude to deeper losses.