Bitcoin Plunge Could Get Much Worse as Death Cross Gains Power
Gold and silver are surging to new highs amid rising macro uncertainty, while Bitcoin is sharply declining, reflecting a shift by investors to traditional safe havens over crypto. Despite being considered stores of value, gold and silver are attracting significant inflows as concerns about a potential U.S. government shutdown, Federal Reserve uncertainty, and possible Japanese yen intervention mount. Bitcoin, at $83,405 after dropping over 6% in a day, has breached multiple support levels since its January peak of $97,000. Key technical indicators are bearish: the 50-day EMA has crossed below the 200-day EMA, signaling a possible long-term downtrend known as a death cross, which has historically preceded major Bitcoin declines. Other signs, such as subdued trend strength (ADX at 24) and no momentum build-up, point to continued weakness. Elevated trading volume suggests strong selling pressure. If Bitcoin drops below $80,600, further declines toward $74,000 or even $65,000 are possible. Significant recovery would require a daily close above $88,000 and rising trend strength, but for now, downward momentum dominates.
