Bitcoin's recent price action has triggered concerns among investors, with technical indicators suggesting the cryptocurrency may have officially entered a bear market. The confirmation of a "death cross" pattern on Bitcoin's daily chart has amplified these fears, as this signal has historically preceded significant price declines.

What is a Death Cross?

A death cross is a technical analysis pattern that occurs when an asset's short-term moving average falls below its long-term moving average. Specifically, it happens when the 50-day moving average (50-DMA) crosses below the 200-day moving average (200-DMA). This crossover is interpreted as a bearish signal, suggesting that short-term momentum is weakening and a deeper corrective phase may be ahead.

Bitcoin's Recent Performance

Bitcoin has been under pressure since reaching an all-time high of around $126,000 in October 2025. As of November 19, 2025, the price had fallen below $90,000. On Friday, November 21, 2025, Bitcoin dropped to $80,000. This downturn represents a significant correction, with Bitcoin losing a substantial portion of its value in a short period. As of Monday, November 17, Bitcoin was down almost 8% over the past five days and down 14% over the past month. Since the downturn started in early October, Bitcoin is down roughly 32%, placing it firmly in bear market territory.

Historical Context

Bitcoin has formed death crosses multiple times in the past. In January 2022, a death cross was followed by a 64% price drop, bottoming at $15,500, which was further fueled by the FTX collapse. Similar patterns occurred before the 2018 and 2014 crashes, which saw declines of 67% and 71%, respectively. However, it's important to note that not all death crosses lead to prolonged bear markets. For example, a death cross in mid-2021 was followed by a correction before Bitcoin bounced back to new all-time highs.

Factors Contributing to the Downturn

Several factors appear to be contributing to Bitcoin's recent decline:

• Profit-taking: After a significant rally, large holders, including institutional investors, may be taking profits.
• Rising volatility: Global financial markets are experiencing increased volatility.
• ETF Outflows: There have been record Bitcoin ETF outflows from institutions.
• Federal Reserve: Fading Federal Reserve rate cut expectations have added to market uncertainty.
• Correlation with Traditional Markets: Bitcoin is now closely correlated with traditional markets, making it susceptible to broader economic concerns.

Potential Support Levels and Future Outlook

If the selling pressure continues, Bitcoin could potentially retest the $72,000 zone, which previously acted as a major breakout level. Some analysts predict that Bitcoin could decline to the $74,000-$76,000 support zone. The Fear and Greed Index is currently at "Extreme Fear," which historically accompanies sell-off cycles, potentially leading to further liquidations but also presenting buying opportunities.

While the death cross and other indicators suggest a potential bear market, it's important to consider that the crypto market is known for its volatility and ability to defy traditional technical analysis. Some analysts believe that the current downturn is a short-term correction within a longer-term bull market, with the cycle potentially extending into 2026.