Bitcoin faced a significant decline on Thursday, marked by the ominous crossover of its 50-day Exponential Moving Average (EMA) dipping below the 200-day EMA. This “death cross” pattern often indicates sustained bearish pressure, leading analysts and investors to brace for further losses.
In stark contrast to Bitcoin’s struggles, gold and silver have reached record highs, raising critical questions about which assets can genuinely serve as reliable stores of value during turbulent economic times. Gold recently surged past $5,600 per ounce, while silver climbed above $121. These movements have come amidst rising uncertainty regarding a potential U.S. government shutdown, Federal Reserve policy changes, and looming threats of Japanese yen intervention, prompting investors to gravitate towards traditional safe havens.
Bitcoin, with a 15-year history, is struggling to compete against the well-established reliability of gold and silver during periods of macroeconomic instability. As Bitcoin rapidly descends from its January peak of nearly $97,000, currently trading around $83,405, it has experienced a loss of 6.46% or approximately $5,763 just in the current session. Analysts warn that if bearish momentum continues, the key support level at $80,601 could be breached, potentially paving the way for a deeper correction towards $74,000.
The death cross is particularly unsettling for Bitcoin, as it implies that recent buyers are now at a loss. When the short-term EMA falls below the long-term EMA, it typically signals a shift toward a bearish market sentiment. Historical precedents show that such patterns have often led to significant downturns in Bitcoin’s price, notably during the painful bear markets of 2022 and 2018.
Currently, the Bitcoin market is trading significantly below both the 50-day and 200-day EMAs, adding to the pressure on bulls. The immediate overhead resistance is set at $88,000, with the 50-day EMA acting as a formidable barrier that bulls have yet to overcome. The Average Directional Index (ADX) indicates a trend strength reading of 24, just shy of the 25-mark that would confirm a strong market move, suggesting that the current price correction may be losing momentum.
Despite elevated trading volumes during this downward trend—indicative of actual selling pressure—analysts remain skeptical about a recovery. The Squeeze Momentum Indicator, currently showing an “Off” status, suggests no significant buildup of energy for a rebound, reinforcing the notion of a gradual decline rather than a sharp recovery.
If the $80,600 support level fails, analysts foresee the possibility of a downturn toward the $74,000 level, where Bitcoin previously found support in April 2025. A break below this threshold could unleash further declines, with potential targets around $65,000—aligning with the long-term support of the 200-day EMA on monthly charts.
For bullish sentiment to re-emerge, Bitcoin must close above $88,000 on a daily basis, ideally accompanied by an increase in ADX readings to signal a potential turnaround. Until such a breakthrough occurs, the prevailing sentiment suggests continued volatility and uncertainty in the market, further exacerbated by the rising performance of gold and silver as investor favorites.
Key levels to monitor in the coming days include:
Resistance Levels:
- $88,000 (50-day EMA, immediate resistance)
- $92,000 (previous support now resistance)
- $108,757 (volume profile zone)
Support Levels:
- $83,381 (volume profile zone)
- $80,601 (strong support)
- $74,000 (April 2025 lows)
