Bitcoin’s price action has entered a critical phase as the leading cryptocurrency consolidates between $84,000 and $86,000, with a potential ‘Dead Cross’ formation threatening further downside. Recent market data shows declining confidence as BTC faces a 3.7% weekly decline and nearly 10% monthly drawdown.
Understanding the Dead Cross Signal
According to CryptoQuant analyst BilalHuseynov, Bitcoin faces a critical technical formation as two key metrics approach a bearish crossover. The Realized Cap, which measures Bitcoin’s network value based on last movement price, and the Thermo Cap, tracking mining-introduced capital, are nearing a ‘Dead Cross’ intersection that historically precedes significant price corrections.
Technical Analysis Points to $75K Support
Huseynov’s analysis suggests that if the Dead Cross materializes, Bitcoin could experience a substantial correction toward the $75,000 level. This technical outlook aligns with recent market turbulence that has seen BTC struggle to maintain momentum above $85,000.
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Long-Term Holder Confidence Remains Strong
Despite the bearish technical setup, on-chain metrics paint a more optimistic picture. The Coin Days Destroyed (CDD) metric shows minimal movement from long-term holders, suggesting strong conviction among veteran investors. This behavior typically precedes sustained price recoveries.
Market Outlook and Trading Implications
Short-term traders should watch the $84,000 level as crucial support, while long-term investors might view any dip toward $75,000 as a potential accumulation opportunity. The reduced selling pressure from 1-3 month holders could provide stability during this consolidation phase.
Frequently Asked Questions
- What is a Dead Cross in Bitcoin terms?
A Dead Cross occurs when the Thermo Cap crosses below the Realized Cap, historically signaling potential price declines. - How low could Bitcoin price go?
Analysis suggests potential support at $75,000 if the Dead Cross pattern completes. - Are long-term holders selling?
No, CDD metrics indicate long-term holders are maintaining their positions, showing confidence in Bitcoin’s future.