Potential for Sustained Bitcoin Decline: Analyzing Technical Indicators
The cryptocurrency market is closely monitoring Bitcoin (BTC) as it hovers around the critical $60,000 support level. Technical indicators suggest a risk of a prolonged downturn in the coming days, raising concerns among investors.
Bearish Signal on the Horizon: Understanding the Death Cross
Bitcoin is nearing a significant bearish formation on its three-day chart, known as the ‘death cross.’ This pattern involves the 50-day simple moving average (SMA) crossing below the 200-day SMA, and is anticipated to occur around February 27, as per analyst insights from Ali Martinez.
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On February 24, Martinez highlighted this setup, noting it follows a steep decline from Bitcoin’s peak in October 2025. Since then, BTC has plummeted over 52%, falling from $110,000 to approximately $68,000. The continued sell-off has seen the price dip below both the 50 and 200 SMAs, reinforcing the downward momentum.
The three-day chart reveals a downward slope in the 50 SMA, closing in on the 200 SMA, suggesting that bearish forces are dominating the market trend. If this cross materializes, it would signify the first of its kind in the current cycle on this higher timeframe.
Historical Impact of the Death Cross on Bitcoin
Historically, the death cross has often preceded the last phase of bear markets. In 2013, Bitcoin had already declined by over 70% before the cross, which was followed by an additional 50% drop. Similarly, in 2017 and again in 2021, the death cross appeared post a significant sell-off, signaling the final descent into the macro bottom.
Ali Martinez suggests that Bitcoin’s current structure is echoing previous cycles, having already fallen more than 50% from its October 2025 peak. The impending death cross implies that selling pressure might continue. Historically, such setups have often marked the final downward leg, hinting at a potential decline of 30% towards $40,000, or in extreme scenarios, 50% towards $30,000.
Bitcoin Trends Downward: Falling Below $65,000
Recently, Bitcoin extended its losses, dropping further below $65,000. At the time of writing, BTC was trading at $63,158, reflecting a nearly 5% decrease over 24 hours, and a more than 6% decline over the past week.
This downturn is largely attributed to renewed uncertainties in U.S. trade policy under President Donald Trump. Following a Supreme Court decision that reduced earlier tariff powers, Trump introduced and later increased a new global import tariff to 15%, sparking fears of trade disruptions, slower economic growth, and rising inflation.
This move has led to a broad risk-averse sentiment among investors, causing a shift away from volatile assets like cryptocurrencies towards traditional safe havens such as gold.
Analysts interpret the sell-off as a tactical de-risking strategy rather than a complete market capitulation. This is driven by leverage unwinds, persistent ETF outflows, and cascading liquidations.
