Bitcoin's Cutting Edge: The Final Sign Before the Market Hits Bottom

Bitcoin is facing a deep sell-off, and technical analysts point out that a bearish death cross could be the key to predicting when the market will actually find a bottom. But to understand better, we need to explore “what is a death cross” – a widely used technical concept in cryptocurrency market analysis.

Bitcoin Drops Below $63,000 Amid Sell-Off Wave

On Asian exchanges, Bitcoin has fallen below $63,000, continuing a sharp decline overnight. The main driver is concerns over President Trump’s new tax policy, as he announced a plan to implement a temporary 15% import tax, up from the previously announced 10%. At the same time, investors are also selling off tech stocks that could lose in the artificial intelligence revolution.

According to data updated on February 26, Bitcoin is currently trading at $67,480, down 1.39% in the past 24 hours. However, recent lows around $63,000 have been flagged by experts as an important level to watch.

Death Cross: A Technical Concept That Determines Market Bottoms

To better understand what a death cross is, here is a detailed description: a death cross occurs when the 50-week moving average crosses below the 100-week moving average. This is a strong technical signal indicating increasing downward momentum. Importantly, this cross is a lagging indicator – it does not predict what is about to happen but confirms what has already occurred.

Although it may sound contradictory, this delay makes the death cross a reliable indicator. When these long-term moving averages cross, it has historically marked the bottoms of bear markets in Bitcoin.

Historical Patterns from 2018 and 2022 May Repeat

Looking back, the death cross has appeared in all major Bitcoin bear markets, including those in 2022 and 2018. This demonstrates a strong statistical pattern. Currently, we are not close to this crossover – the 50-week moving average is still significantly above the 100-week.

If history is any guide, the market may need to experience a deeper sell-off before the death cross occurs. Experts estimate that Bitcoin could drop toward around $50,000 or even lower – a considerable distance from the current level.

Key Support Levels and Policy Concerns

Analysts are closely watching the $60,000 support level, considered a key short-term anchor. If this level fails to hold, a move down to around $50,000 becomes very likely.

Near-term risks are not only technical. Uncertainty around Trump’s trade policies, similar to what happened in April 2025, could continue to exert downward pressure on Bitcoin. Additionally, geopolitical tensions and AI-related fears are contributing to the overall sell-off sentiment.

Warning: History Does Not Guarantee Future Outcomes

While a death cross can be understood as a golden indicator for market bottoms based on historical data, it’s important to remember that no indicator can guarantee certainty. Past performance is not a guarantee of future results. Investors should use the death cross as a supplementary analysis tool, not as the sole prediction.

In the current environment, monitoring the development of the moving average death cross along with fundamental factors will help traders gain a more comprehensive view of the cryptocurrency market dynamics.