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Bitcoin saw a sharp drop on Tuesday, reaching a low of $102,422, having earlier traded at $107,482.
At press time, Bitcoin was down 0.23% in the last 24 hours to $104,880, but up 2.80% weekly.
Bitcoin’s recent price action follows a lull in the market amid October’s flash crash, with a bearish death cross — which occurs when the short term moving average MA 50 falls below the MA 200 — set to emerge in the coming days.
The daily MA 50 is currently heading downward, raising the possibility of a death cross, the second of such occurrences this year, with the first in April.
If confirmed, this would be the fourth Bitcoin death cross since 2023, with the last three occurring in September 2023, August 2024 and April 2025, indicating weak momentum in the short term.
Death crosses have proven unreliable on their own, with the previous three in September 2023, August 2024 and April 2025 marking a bottom for Bitcoin’s price. Whether history will repeat in this case remains unknown.
According to Glassnode, at a current price of $104,880, Bitcoin is trading between the 0.85 and 0.75 cost-basis quantiles ($108,500 and $100,600, respectively). Traders will be watching these two levels, which have previously acted as support and resistance, with a definite breach of any of the two likely to spell the next directional trend.
Bitcoin might see increased volatility ahead if the price breaks above short-term resistance levels around $111,000 and $116,000. These two levels will also be watched.
That said, Bitcoin is currently trading in a crucial inflection zone. The market sentiment remains cautious, with signs of a potential local bottom forming around $100,000. The range between $100,000 and $108,000 could form support in the midterm.
