Bitcoin ‘death cross’ data hints 43% drop due in BTC price bear market

Bitcoin (BTC) could drop more than 40% from last week’s lows, warns new data as one analyst says it is now in a bear market.

one in series of tweets On May 20, popular trader and analyst Rekt Capital argued that BTC/USD should dive to around $20,000 in line with historical norms.

Death Cross BTC Price Target Now $22,700

There has been much debate over the so called “death cross” constructions on bitcoin charts. These include a decline of the 50-period moving average (50MA) below the 200MA.

Often in the past, such an event has triggered a significant drop in prices, marked by what Rect Capital calls “generational bottoms”.

“More often than not, the depth of the $BTC correction pre-death cross is the same as the depth after the death cross,” he summarized.

March 2020 and May 2021 both broke the rules when it comes to post-death losses, however – in both cases, the death cross itself marked the bottom.

In January 2022, the historical trend seemed to return, as a death cross event occurred after BTC/USD declined 43% from its November 2021 all-time high of $69,000.

However, another 43% from there, puts the pair at $22,700.

20.

so since #B T c Before Death Cross has crashed -43% from November ’21…$BTC There may be a slight further retreat to reach the overall retracement level of -43% after the death cross, should this historical trend continue to repeat

This results in ~$22,700 . Will happen $BTC#crypto #bitcoin pic.twitter.com/aH91tn2xmr

— Rect Capital (@rektcapital) 20 May 2022

“The interesting thing about the -43% scenario after the Death Cross crash is that it will result in $22000 BTC,” the closing tweet read, along with a chart on the significant return on investment (ROI) opportunities during the downtrend. highlighted.

“Which ties in with the 200-SMA (orange), which presents a great opportunity for $BTC investors with a large ROI (green circles highlight this).”

bear market face

Elsewhere, fellow analyst Filbfilb, co-founder of trading suite Decentrader, said it was time to acknowledge that bitcoin is in a bear market.

RELATED: Bitcoin Must Defend These Price Levels to Avoid ‘Too Deep’ Fall: Analysis

In its latest market update on May 20, Filbfilb marked a one-year MA as a key level to break out of the quagmire, which resulted in it losing support as early as April.

“Ultimately we continue to sit in a bear market. This is the case since the price has retreated from the 1-Year Moving Average which we have highlighted as a major risk. […] When the price got rejected from that level,” he wrote.

“Until we reclaim that level, we will have to face the reality that we are in a bear market for $BTC.”

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