Bitcoin death cross deepens sell-off risk

Bitcoin slid sharply on Thursday as a so-called death cross formed on its charts, reinforcing fears that the recent sell-off could extend much further.

The 50-day exponential moving average has crossed below the 200-day EMA, a technical pattern that has historically signalled prolonged bearish phases for Bitcoin and preceded major drawdowns in 2018 and 2022.

Bitcoin was trading near $83,400, down more than 6% on the day, after cutting through multiple support levels since peaking close to $97,000 in January.

The weakness contrasts sharply with traditional safe havens, as gold surged past $5,600 an ounce and silver climbed above $121, underscoring investor preference for crisis-tested assets amid macro uncertainty.

Rising fears of a US government shutdown, Federal Reserve uncertainty and potential intervention in the Japanese yen have fuelled risk-off positioning, leaving crypto assets struggling to attract defensive flows.

Technical analysts warn that if key support around $80,600 fails to hold, Bitcoin could face a deeper correction toward the mid-$70,000 range.

Until momentum stabilises, the death cross suggests recent buyers remain under pressure, keeping the near-term outlook skewed toward further downside.

At the time of reporting, Bitcoin price was $83,178.25.