Bitcoin’s price action has taken a concerning turn as it approaches a critical chart setup that could test the mettle of even the most seasoned investors. Currently trading at approximately $88,690, the cryptocurrency is teetering near the risk of a “death cross” formation on the weekly BTCUSDT chart. With just two days left in the current weekly candle, market watchers are closely monitoring the situation.
At present, Bitcoin is positioned below both the 23-week and 50-week moving averages, which sit at roughly $101,870 and $106,528, respectively. This indicates that any upward movement is met with substantial selling pressure from traders who missed their exit points during previous highs. The looming death cross is defined by the shorter moving average trending downward toward the longer one, a situation that could be confirmed if the price drops beneath it.
As market sentiment shifts, discussions surrounding possible downside scenarios have intensified. Analysts are evaluating two main paths for Bitcoin in the near future. Should Bitcoin manage to reclaim the $101,870 to $106,528 range and maintain that level through a weekly close, it could defuse the imminent death-cross threat. In that case, the next significant resistance to overcome would be $107,155.
Conversely, failure to secure this critical range would mean the focus shifts to the support level at $80,600. Should Bitcoin break below this level, concerns will pivot from potential dips to risk management strategies. The next alert level would then set eyes on $74,111, and a sustained break under $80,600 could mark a significant shift in sentiment, with analysts eyeing the potential drop toward the $67,026 area, where the 200-week moving average currently resides.
From its current trading price of $88,690, a 25% decline would land Bitcoin near the psychological threshold of $67,000—a figure often referenced in discussions among traders. Although the situation is not yet labeled as a “curse” due to the death cross, the chart is signaling a need for buyers to demonstrate strength. The outcomes of the next few weekly closes will be crucial in determining whether this represents a mere pause in the market or the inception of another downward leg.
