BTC/USD Weekly Chart (Bitstamp) – Source: TradingView
The last death cross between these two lines took place in April 2022. Back then, the price dropped from around $40,000 to $16,00, resulting in a 60% loss in just 7 months.
If history repeats, this would mean that the price could collapse to $36,000, as we initially predicted back in a BTC price prediction piece from November 28.
BTC’s November “Sell” Signal Provided an Early Warning
We have been sharing this mid-term target for BTC multiple times already, and the price action has been confirming this outlook as the token has failed to recapture the $100,000 level.
This death cross is showing up 10 weeks after a sell signal appeared in this higher time frame (HFT). This signals system identifies decisional candles by analyzing a combination of trend direction, trading volumes, and candle patterns.
HFT signals are much more reliable and less frequent compared to hourly ones. They tend to be good predictors of the direction of an asset’s price trend, and, in this case, this sell candle may have marked the start of BTC’s current bearish cycle.