Bitcoin’s Latest Trick: “Death Cross” or Just Another Crypto Drama?

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In the vast and ever-tumultuous world of cryptocurrency, where fortunes are made and lost in the blink of an eye, a new chapter unfolds. A cryptocurrency analyst, with the keen eye of a seasoned observer, has brought attention to a technical crossover in Bitcoin’s trajectory-a harbinger of bearish trends from days past.

The “Death Cross” Returns: A Familiar Specter in Bitcoin’s Tale

In a recent post on X, the platform formerly known as Twitter, analyst Ali Martinez shared a daily price chart of Bitcoin. The chart illustrates a crossover between two simple moving averages (SMAs)-those of 21 and 50 days. SMAs, as any student of statistics knows, serve to smooth out the jagged edges of price fluctuations, offering a clearer view of long-term trends.

As depicted in the chart, the Bitcoin price has recently witnessed its 21-day SMA dip below the 50-day SMA. This phenomenon, ominously dubbed the “death cross,” has historically signaled a steep decline in the cryptocurrency’s value. The chart, stretching across the last decade, highlights previous instances of this crossover, each followed by a harrowing drop of 54% to 69%.

The most recent occurrence was in 2022, plunging Bitcoin into a bear market with a 66% decline. Whether this latest crossover will usher in a similar fate remains to be seen. Yet, as history has shown, the “death cross” is not to be trifled with.

Should bearish momentum prevail, Bitcoin risks breaching the Realized Price-to-Liveliness Ratio, a critical on-chain metric. This ratio, derived from two indicators-the Realized Price and the Liveliness-serves as a barometer of investor behavior. The Realized Price tracks the average cost basis of Bitcoin investors, while Liveliness measures their propensity to hold or spend.

As Martinez notes in another post, Bitcoin has been flirting with the Realized Price-to-Liveliness Ratio, currently hovering around $87,500. Though Bitcoin briefly dipped below this threshold during a recent Sunday downturn, it has since clawed its way back above it.

“The last time Bitcoin fell below the Realized Price-to-Liveliness Ratio, it gravitated toward the Realized Price,” Martinez remarked. Presently, the Realized Price stands at $56,000-a figure that looms like a shadow over Bitcoin’s future.

The Current State of Bitcoin’s Price

As of this writing, Bitcoin trades at approximately $89,500, marking a modest 2% increase over the past week. Yet, in the grand theater of cryptocurrency, such fluctuations are but fleeting interludes in a drama that shows no signs of resolution.

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2026-01-29 09:04