Explore the Bitcoin death cross impact on crypto prices and key support levels for BTC, ETH, and XRP. Gain insights into bearish trends—read now for essential market analysis.

What is a Bitcoin Death Cross?

The Bitcoin death cross is a technical indicator where the short-term 50-day exponential moving average (EMA) crosses below the longer-term 200-day EMA, often foreshadowing prolonged bearish trends. This pattern has now formed for Bitcoin, confirming a breakdown in its bull market structure as the price trades below both EMAs. Traders view this as a strong sell signal, especially with the gap between the EMAs widening, which reinforces the downward momentum.

Bitcoin opened the day at $86,691 and quickly declined to an intraday low of $80,620 before a slight recovery to around $85,187, marking a 1.61% drop. This movement solidifies the death cross first spotted on Wednesday when BTC slipped to $88,000. According to data from TradingView, the Average Directional Index (ADX) stands at 41, indicating a robust downtrend well above the 25 threshold for trend confirmation.

The Relative Strength Index (RSI) has fallen to 23.18, placing Bitcoin in deeply oversold territory on a 0-100 scale. While oversold conditions can suggest undervaluation and potential rebounds, in strong bearish phases, prices may continue declining. The Squeeze Momentum Indicator also signals intensifying bearish pressure, with Bitcoin trading below key volume nodes in the Volume Profile Visible Range, showing limited buying support.

How Does the Federal Reserve’s Policy Affect Bitcoin Prices?

The Federal Reserve’s stance on interest rates is exerting significant downward pressure on risk assets like Bitcoin. Markets recently anticipated a 97% probability of a December rate cut, but this has fallen to between 22% and 43% based on various metrics. Fed officials remain divided, with many favoring steady rates through year-end, which diminishes liquidity for crypto investments.

This macroeconomic shift aligns with broader market contraction, as the total crypto capitalization dips to $2.91 trillion after shedding $60 billion in 24 hours. Nearly all top 100 coins by market cap are in the red, amplifying the selloff. Expert analysts, including those from traditional financial institutions like JPMorgan, note that higher-for-longer rates historically correlate with reduced appetite for volatile assets such as cryptocurrencies.

Frequently Asked Questions

What Are the Next Support Levels for Bitcoin After the Death Cross?

Immediate support for Bitcoin sits at $80,697, which held briefly today but remains vulnerable. A break below could target $74,555, then $65,727, with a worst-case scenario reaching $53,059 during heightened panic. These levels correspond to prior consolidation zones with high trading volume, per TradingView charts, offering potential bounce points for oversold conditions.

Will Ethereum Confirm a Death Cross Soon?

Ethereum is on the brink of a death cross, with its 50-day EMA hovering just above the 200-day EMA before likely crossing soon. Currently trading at around $2,798 after dipping to $2,621, ETH faces the 0.618 Fibonacci retracement at $2,755. A breach could lead to $2,180 support, representing a 22% decline, as confirmed by strong ADX readings at 46.

How Is XRP Performing Relative to Bitcoin in This Selloff?

XRP shows relative resilience, down only 0.50% to $1.98, but has confirmed its own death cross with the 50-day EMA below the 200-day. Trading beneath both EMAs with an ADX of 32, the next support is at $1.589—a 20% drop—followed by $0.66 in a severe scenario. This positions XRP as potentially less volatile amid broader market fears.

Key Takeaways

• Death Cross Confirmation: Bitcoin’s technical pattern shift signals bears in control, with EMAs diverging to strengthen the downtrend.
• Macroeconomic Pressures: Diminished Fed rate cut odds exacerbate the selloff, impacting the entire $2.91 trillion crypto market.
• Monitor Support Levels: Watch $80,697 for BTC; breaches could accelerate declines, but oversold RSI offers rebound potential—stay vigilant for entry points.

Conclusion

The Bitcoin death cross, alongside Ethereum’s impending confirmation and XRP’s established pattern, underscores a bearish phase for major cryptocurrencies driven by technical breakdowns and Federal Reserve policy uncertainties. With the Fear and Greed Index at extreme fear levels of 14, traders face heightened volatility, but historical patterns suggest oversold conditions may eventually foster recovery. As markets evolve, monitoring key supports and sentiment shifts remains crucial for informed positioning in this dynamic landscape.