"Bitcoin dead cross set to reappear…Past cases saw an average additional 35% drop"

Technical analysis suggests that a "dead cross" has re-emerged on Bitcoin’s (BTC) three-day chart, stoking concerns of a deepening bear market.

According to Cointelegraph, a crypto-focused media outlet, Bitcoin recently formed a dead cross on a three-day basis as the 50-period moving average crossed below the 200-period moving average. It is the first time this signal has appeared on the three-day chart since June 2022.

A dead cross is a pattern in which a short-term moving average breaks below a long-term moving average, and is widely interpreted as a bearish signal pointing to the possibility of further declines.

In the comparable 2022 episode, after the same 50/200 moving-average crossover, Bitcoin plunged about 50% and bottomed near $15,480. Bitcoin has previously seen a dead cross a total of three times.

In particular, across the three past cycles, Bitcoin fell by an average of about 80% from its peak. As of the day in question, Bitcoin was down about 50% from its all-time high of roughly $126,270.

Some market participants believe Bitcoin could form a bottom in the $30,000–$45,000 range. Analyst Mister Crypto said, "We are now entering the harshest phase of the bear market."

Still, institutional flows sent mixed signals. U.S. spot Bitcoin exchange-traded funds (ETFs) recorded net daily inflows of $458.2 million, even as geopolitical risks in the Middle East increased after the 28th. This suggests that the outflow trend seen in recent weeks has partially reversed.